CS Arjun Rajagopal (B.com, ACS) (1056 Points)
29 June 2016Dear CCI Members,
I would like to know what is the time limit for allotment of shares in the case of rights issue u/s 62(1)(a). I haven't any seen aything about time limit for allotment in the said section or its rules. Does the time limit for allotment mentioned in the case of private placement 42(6) is also applicable to rights issue?
I would be grateful if relevant section or rule is quoted.
Please reply.
Regards,
Arjun Rajagopal
Pratik Shah
(Practising Company Secretary)
(4432 Points)
Replied 29 June 2016
Yes, time limit as mentioned for private placement will be applicable in this case. Also, if you see deposit rules, it is also saying that if shares are not alloted within 60 days from the date of receipt of money, it has to be refunded within next 15 days, and if it is not refunded, then such amount will be considered as Deposit.
Ajit Hegde
(CA - Final)
(1367 Points)
Replied 20 December 2017
There is no time limit for allotment of shares. The time limit in sec 42 is applicable only if application money is received. And Sec.62 provides time limit for acceptance of the offer, not for allotment of shares.
Law Aspire
(CS)
(755 Points)
Replied 25 January 2018
| Originally posted by : Pratik Shah | ||
 |
Yes, time limit as mentioned for private placement will be applicable in this case. Also, if you see deposit rules, it is also saying that if shares are not alloted within 60 days from the date of receipt of money, it has to be refunded within next 15 days, and if it is not refunded, then such amount will be considered as Deposit. |  |
Mr. Pratik Shah
Can you tell us within how many days Process from the date of making offer must be completed in the rights issue
CAclubindia
