The Cost of a Few Paise: Why Rounding Off in Preferential Allotments is a Compliance Trap

CS Divesh Goyal | Last updated: 12 June 2026

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A recent case involving Netanalytiks Technologies highlights that even minor rounding errors in share pricing during preferential allotments can lead to significant compliance issues and penalties. The company was fined for allotting shares at Rs 334 instead of the valuer's determined price of Rs 334.59, despite rectifying the error and paying the difference with interest. This case underscores that there is no 'de minimis' exception in company law for such pricing discrepancies, and the valuation price acts as an absolute floor.

A recent adjudication order from the Registrar of Companies (ROC), Bangalore, has underscored a critical lesson for Company Secretaries, legal teams, and corporate boards: in the realm of statutory compliance, there is no such thing as "immateriality". The case involving Netanalytiks Technologies Li

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About the Author

CS Divesh Goyal

Practicing Compnay Secretary

CAREER PROFILE He is a Fellow Member of the Institute of Companies Secretaries of India having intense expertise in Corporate Law for the last 8 years. He is a young and progressive Practicing Company Secretary with zeal to dig deep into the nuances of Corporate Laws. Being a researcher at heart, he has done ... Read more

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