right issue

As per section 62(1)(a) of the Companies Act 2013, following is the procedure for right issue of shares

Hold the Board Meeting and pass the Board resolution for draft letter of offer.

Decide the cut of date or record date fixed for right issue of share

Draft letter of offer shall sent to all the existing shareholders

The draft offer letter shall be sent 3 days before opening of issue.

the offer shall remain open for minimum 15 days and maximum 30 days.

Receive the application money

pass the board resolution for allotment of shares and issue of share certificate

authorize two directors and authorized signatory for issue of share certificate.

File PAS 3 within 30 days of allotment along with following attachments

list of allotees

certified copy of Board resolutionissue of share certificate duly signed by 2 directors and authorized signatory along with coomon seal (optional)

Pay stamp duty state vise on share certificate within 30 days of issue.

Dear All,

The Company which issues share by way of right issue shall not send Draft office letter to the existion Memebers the Company will send Final letter duty approved by the Board of the Comapy and duly signed by the Authorised persons(Aujtorised by the Boardof the Company).

A bank account needs to be opned for receiving application money.If shares are to be issued in physical form share certificate will be issued if the shares are to be issued in the dematerialised form requisite procedures  with Depositories will have to be followed.