Question

State the prerequisite to be complied with by a company for the issue of shares at a discount

Answer 1

Share issue at a discount means the issue of the shares at a price less than the share's face value

• The conditions for Issue of Shares at Discount
• The company has to get approval from the appropriate authority to sell the shares at a price less than the face value.
• There is a cap on the rate of discount in the case of issue of shares at discount.
• The company must issue the shares within 60 days of receiving the permission from the competent authority.