Face value of shares

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aman (Querist)
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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.?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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01 January 2014 Aman...I dont think so. Private companies are at liberty on this.

aman

aman (Querist)
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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..???

Nikhil Kaushik

Nikhil Kaushik (Expert)
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01 January 2014 Dear Aman,

Can a private company make a public issue??

aman

aman (Querist)
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04 January 2014 Thanx sir.....i got my ans in ur qust'n

Nikhil Kaushik

Nikhil Kaushik (Expert)
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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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