Why we cannot issue shares on discount
This query is : Resolved
Quick Summary
24 July 2022
Company act 2013 prohibites issue of shares at discount but why we can't issue when conpany is finding difficult in raising funds or when interest rates are high ? I want to know logic behind this
24 July 2022
A company cannot issue shares at a discount because the loss due to the discounted price is barely managed by any company.
25 July 2022
Issuing share at below par value / discount may not have parity among all companies and may create unhealthy competition also.
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