Face value of shares
This query is : Resolved
31 December 2013
Hello experts,
i knw as per SEBI(ICDR) face value of shares cannt exceed rs10. Does this rule applicble to pvt companies also.?
01 January 2014
Aman...I dont think so. Private companies are at liberty on this.
01 January 2014
Sir have a look on this:
"Face value of equity shares.
31.
(1)
Subject to the provisions of the Companies Act, 1956, the Act and these regulations, an
issuer making an initial public offer may determine the face value of the equity shares in the
following manner:
(a)
if the issue price per equity share is five hundred rupees or more, the issuer shall have
the option to determine the face value at less than ten rupees per equity share:
Provided that the face value shall not be less than one rupee per equity share;
(b)
if the issue price per equity share is less than five hundred rupees, the face value of the
equity shares shall be ten rupees per equity share:
Provided that nothing contained in this sub-regulation shall apply to initial public offer
made by any government company, statutory authority or corporation or any
special
purpose vehicle set up by any of them, which is engaged in infrastructure sector
."
In this there is no exclusion of pvt. companies..???
"Face value of equity shares.
31.
(1)
Subject to the provisions of the Companies Act, 1956, the Act and these regulations, an
issuer making an initial public offer may determine the face value of the equity shares in the
following manner:
(a)
if the issue price per equity share is five hundred rupees or more, the issuer shall have
the option to determine the face value at less than ten rupees per equity share:
Provided that the face value shall not be less than one rupee per equity share;
(b)
if the issue price per equity share is less than five hundred rupees, the face value of the
equity shares shall be ten rupees per equity share:
Provided that nothing contained in this sub-regulation shall apply to initial public offer
made by any government company, statutory authority or corporation or any
special
purpose vehicle set up by any of them, which is engaged in infrastructure sector
."
In this there is no exclusion of pvt. companies..???
01 January 2014
Dear Aman,
Can a private company make a public issue??
Can a private company make a public issue??
04 January 2014
needless to say that as and when a private company decides to go public, ICDR will come into play.
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