Share Application money pending allotment

Hi...

To the best of my knowledge there is no such time period prescribed under the Companies Act, 1956 or the rules framed thereunder within which the shares have to be allotted. As a prudent practice and as per what has been prescribed under the FDI Master circular issued by RBI, shares must be allotted within 180 days from the date of receipt of share application money.

As per section 113 of the Companies Act, 1956 share certificates must be issued within 3 months from the date of allotment.

God Bless

CS Udit Sharma  

As per the provisions of section 205C of the Companies Act, 1956 any share application money pending allotment for a period of 7 years or more is to be transferred to Investor Education and Protection fund.  

But Sir in th present query, shares have not been alloted yet, so there is no point of Section 113 coming into the picture.

Regards

Priya

Priya

My second para of first reply was given only for the information of querist, if required.

I have answered the query posted very well in my first para  and in case it is wrong please quote the same. I never said that the second para  was answered as reply to the query posted  but was provided simply for her knowledge, in case required.

God Bless

CS Udit Sharma

sir , in case of Share application money is paid to company outside India (Eg.USA) for a purpose of valuation date it is monitories / non- monitories item