Maximum issue price of shares.
This query is : Resolved
22 December 2014
Dear sir/madam,
1. Can shares be issued at a price more than the book value of such shares.
For ex- Suppose, BV is Rs. 19, then can the shares be issued at 20 and above.(In case of a Pvt. Ltd Co).
2. Is there any penalty on issue of shares at a price higher than their book value.
3. Are there any circumstances where any restrictions are placed for issuing shares at a price which is more than their book Value.
Early reply expected.
Thanks.
1. Can shares be issued at a price more than the book value of such shares.
For ex- Suppose, BV is Rs. 19, then can the shares be issued at 20 and above.(In case of a Pvt. Ltd Co).
2. Is there any penalty on issue of shares at a price higher than their book value.
3. Are there any circumstances where any restrictions are placed for issuing shares at a price which is more than their book Value.
Early reply expected.
Thanks.
22 December 2014
Shares can very well be issued for a value which is more than Book Value.
There is no restriction per se.
The restriction is found in case of FIPB, that too regarding taking the permission of RBI for FDI
There is no restriction per se.
The restriction is found in case of FIPB, that too regarding taking the permission of RBI for FDI
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