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Utilisation of share application money under Rights Issue

This query is : Resolved 

11 April 2020 Can we utilise share application money before allotment of shares under Rights Issue?


17 April 2020 Earlier, under old Companies Act regime, many companies accepted share application money under private placement and utilized the same for the business purpose even without allotment of shares. ... Now, Section 42 of the Companies Act, 2013 puts prohibition over the said practic

17 April 2020 So share application money cannot be utilised before completion of allotment proceeding


14 June 2020 It is not allowed..........................



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