Can a private limited company sell its shares on premium?

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CEO
36 Points Posted on 07 March 2017

Hello Everyone,

Can a private limited company incorporated in May 2016 can sell some of its shares at a premium to some prescribed members? For ex: Face value of share is ₹10 and want to sell at ₹200. Are there any rules regarding this? Can some one give detailed explanation.

 

Thanks in Advance.

 

Regards,

Ajith Chand Kanagala

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On 07 March 2017 at 21:04 Report
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Knowledge Seeker
575 Points Posted on 08 March 2017
Yes... private company can sell shares at premium... as per section 53 restriction is only on issue of shares at discount... there is no restriction on premium.....
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On 08 March 2017 at 21:12
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CEO
36 Points Posted on 08 March 2017

Selling in premium means we can sell at any price? irrespective of company valuation?

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On 08 March 2017 at 23:35

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