21 February 2014
As per Rule 8(4) of the Unlisted Public Companies (Preferential Allotment) Amendment Rules, 2011, “any allotment of securities shall be completed within 60 days from the receipt of application money and in case the company is not able to allot the securities within the said period of 60 days, it shall repay the application money with 15 days thereafter, failing which it will be required to be repaid with interest at the rate of 12% per annum.”
So, application pending for allotment for more than a year shall have to be refunded along with interest @12% per annum.
21 February 2014
another issue is that for which also applies to private companies is that disclosure needs to be made in Form 5 INV for such share application money!
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