Non applicability of the Guidelines

Non-applicability of the Guidelines The above guidelines are not applicable in the following cases: (i) Where further shares are allotted in pursuance to the merger and amalgamation scheme approved by a High Court; (ii) (a) Where further shares are allotted to a person/group of persons in accordance with the provisions of the rehabilitation packages approved by the BIFR, (b) Where such persons are promoters or

Preferential Allotment to Foreign Institutional Investors (FIIs)

Preferential Allotment to Foreign Institutional Investors (FIIs) Preferential allotments, if any, to be made in case of foreign institutional investors are also governed by the guidelines issued by the Government of India/SEBI/Reserve Bank of India. Finance-Assignments.comInstructions Feel free to send us an inquiry, we reply back real quick. Or directly email us at order@finance-assignments.comName *Email

Certificate from Auditors

Certificate from Auditors In case, every issue of shares/warrants/FCDs/PCDs/or other financial instruments with the conversion option, the statutory auditors of the issuer company should certify that the issue of the said instruments is being made in accordance with the requirements contained in these guidelines. The copies of the auditors certificate should also be laid before the meeting of the shareholders

Currency of Shareholders Resolutions

Currency of Shareholders Resolutions Any allotment pursuant to any resolution passed at a meeting of shareholders of a company granting consent for preferential issues of any financial instrument should be completed within a period of three months from the date of passing of the resolution. The equity shares/convertible securities allotted in terms of this resolution should be made fully paid-up at the time of

Non transfer Ability of Financial Instruments

Non transfer Ability of Financial Instruments The instruments allotted on a preferential basis to the promoters/promoter groups are subject to a lock-in period of three years from the date of their allotment. In any case not more than 20 per cent of the total capital of the company, including the one brought in by the way of preferential issue, would be subject to a lock-in period and three years from the date

Currency of Financial Instruments

Currency of Financial Instruments In the case of warrants/PCDs/FCDs/or any other financial instruments with a provision for the allotment of equity shares at a future date, either through conversion or otherwise, the currency of the instruments cannot exceed beyond 18 months from the date of issue of the relevant instrument. Finance-Assignments.comInstructions Feel free to send us an inquiry, we reply back r

Pricing of Shares on Conversion

Pricing of Shares on Conversion Where PCDs/FCDs/other convertible instruments are issued on a preferential basis, providing for the issuer to allot shares at a future date, the issuer should price at which the shares could be allotted in the same manner as specified for of shares allotted in lieu of warrants. The explanatory statement to the notice of the general meeting in terms of Section 173 of the Companies

Pricing of Shares Arising Out of Warrants

Pricing of Shares Arising Out of Warrants Where warrants are issued on a preferential basis an option to apply for and be allotted shares, the company should determine the price resultant shares in accordance with the provisions stipulated above. The relevant date for we purpose may, at the option of the issuer, be either the one referred to above or a date prior to the date on which the holder of the warrants

Pricing of the Issue

Pricing of the Issue The issue of shares on a preferential basis can he made at a price not less the higher of the following: (i) The average of this weekly high and low of the dosing prices related shares quoted on the stock exchange (i.e any of the recognized stock exchanges on the shares are listed and in which the highest trading volume in respect of the shares of the any has been recorded during the six mon

Preferential Issue

Preferential Issue The preferential Issue of equity shares/fully convertible debentures (PCDs)/partly convertible debentures (PCDs) or any other financial instrument that would he converted into or exchanged equity shares at a later date by listed companies to any select group of persons under section of the Companies Act, 1956, on a private placement basis, are governed by the guidelines below. Finance-Ass