Time limit for allotment of shares under rights issue

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CS Arjun Rajagopal

B.com ACS

738 Points Posted on 29 June 2016

Dear CCI Members,

I would like to know what is the time limit for allotment of shares in the case of rights issue u/s 62(1)(a). I haven't any seen aything about time limit for allotment in the said section or its rules. Does the time limit for allotment mentioned in the case of private placement 42(6) is also applicable to rights issue?

I would be grateful if relevant section or rule is quoted.

Please reply.

Regards,

Arjun Rajagopal

Replies (3)

Pratik Shah

Practising Company Secretary

3263 Points Posted on 29 June 2016

Yes, time limit as mentioned for private placement will be applicable in this case. Also, if you see deposit rules, it is also saying that if shares are not alloted within 60 days from the date of receipt of money, it has to be refunded within next 15 days, and if it is not refunded, then such amount will be considered as Deposit.

Ajit Hegde

CA - Final

1134 Points Posted on 20 December 2017

There is no time limit for allotment of shares. The time limit in sec 42 is applicable only if application money is received. And Sec.62 provides time limit for acceptance of the offer, not for allotment of shares.

Law Aspire

563 Points Posted on 25 January 2018

Originally posted by : Pratik Shah
	Yes, time limit as mentioned for private placement will be applicable in this case. Also, if you see deposit rules, it is also saying that if shares are not alloted within 60 days from the date of receipt of money, it has to be refunded within next 15 days, and if it is not refunded, then such amount will be considered as Deposit.