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Can a private limited company sell its shares on premium?

Pvt ltd 494 views 2 replies

Ajith Chand Kanagala

CEO

51 Points Joined April 2014

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

Replies (2)

Ravi Kiran Vustela

Knowledge Seeker

1353 Points Joined October 2016

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.....