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Why we cannot issue shares on discount

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(Querist)
24 July 2022 Company act 2013 prohibites issue of shares at discount but why we can't issue when conpany is finding difficult in raising funds or when interest rates are high ? I want to know logic behind this
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
24 July 2022 A company cannot issue shares at a discount because the loss due to the discounted price is barely managed by any company.
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CA Manish

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CA Manish (Expert)
25 July 2022 Issuing share at below par value / discount may not have parity among all companies and may create unhealthy competition also.



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Neev Garg

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Neev Garg (Querist)
25 July 2022 Thanks sir for your valuable time

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