Which allotment option to select in PAS-3 if allotment to existing shareholders

Hey Rushi! Here’s a clear answer for your PAS-3 allotment option question:

Scenario:

• Shares are allotted to existing shareholders

• But not proportionate to their existing shareholding

What option to select in PAS-3?

• Since the allotment is not proportionate to their existing shareholding, it cannot be treated as a "Rights Issue".

• Rights Issue means offering shares to existing shareholders in proportion to their existing holdings.

• Here, since it's disproportionate, this is treated as a Private Placement.

So, in FORM PAS-3:

• Select the "Private Placement" option under allotment type.

Why?

• Private Placement covers allotments made to existing shareholders or others, without adhering to proportional rights.

• Rights Issue is only when shares are offered strictly proportionate to existing holdings.