Allotment of securities

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Santhosh Ganesh (Querist)
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03 March 2015 Dear all

what is the time limit for allotment of securities after receiving Share application money from the members for a public company?

CS JAY GOHIL

CS JAY GOHIL (Expert)
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03 March 2015 with in 60 days of allotment shares is to be allotted

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Santhosh Ganesh

Santhosh Ganesh (Querist)
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04 March 2015 thanks sir

For Both the Public and Private company that applies or that is restricted only to public company

further can you quote the section reference if any found

CS JAY GOHIL

CS JAY GOHIL (Expert)
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05 March 2015 ection 42(6) further provides that-“(6) A company making an offer or invitation under this section shall allot its securities within sixty days from the date of receipt of the application money for such securities and if the company is not able to allot the securities within that period, it shall repay the application money to the subscribers within fifteen days from the date of completion of sixty days and if the company fails to repay the application money within the aforesaid period, it shall be liable to repay that money with interest at the rate of twelve per cent. per annum from the expiry of the sixtieth day:

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Santhosh Ganesh

Santhosh Ganesh (Querist)
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05 March 2015 Dear Jai

But section 42 is for private placement only

if we allot shares by rights issue means will that time limit apply

Santhosh Ganesh

Santhosh Ganesh (Querist)
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05 March 2015 Dear Jai

But section 42 is for private placement only

if we allot shares by rights issue means will that time limit apply

CS JAY GOHIL

CS JAY GOHIL (Expert)
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05 March 2015 yes any issue of shares, as per sec 73 of ca 2013 i.e. rule of deposit if share is not alloted with in 60 days than share application money is to be treated as deposit.

Santhosh Ganesh

Santhosh Ganesh (Querist)
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06 March 2015
thanks a lot Mr. Jay

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