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Denomination of Shares

Public/rights issue of equity shares can be made in denomination in accordance with Section 13(4) of the Companies Act and in compliance with norms specified by the SEBI from time to time. The companies that have already issued shares in the denominations of Rs 10 or Rs 100 may change their standard denomination by splitting/consolidating them. The issue of shares in any denomination or change in the standard denomination is subject to the following: (i) the shares should not be issued in the denomination of a decimal of a rupee: (ii) the denomination of the existing shares should not be altered to a denomination of a decimal of a rupee; (iii) at any given time, there would be’ only one denomination for the shares of a company;  (iv) the companies seeking to change the standard denomination may do so only if their memorandum and articles of association permit and (v) the company should adhere to the disclosure and accounting norms specified by the SEBI from time to time.

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