15 January 2011
Section 13(4) of the Companies Act,1956 does not prescribe minimum amount for face value of shares. But in case of public limited companies in addition to the referred section SEBI norms have to be complied with,which contains minimum amounts.
15 January 2011
As per clause 31 (1)of SEBI (ICDR )REGULATIONS, 2009 - Subject to the provisions of the Companies Act, 1956, the Act and these regulations, an issuer making an initial public offer may determine the face value of the equity shares in the following manner: (a) if the issue price per equity share is ts. 500 or more, the issuer shall have the option to determine the face value at less than ten rupees per equity share: Provided that the face value shall not be less than one rupee per equity share; (b) if the issue price per equity share is less than five hundred rupees, the face value of the equity shares shall be ten rupees per equity share: Provided that nothing contained in this sub-regulation shall apply to IPO by (a)any government company, (b) statutory authority or corporation or (c) any special purpose vehicle set up by any of them, ---which is engaged in infrastructure sector. ----------------------------------------- so issue price is500or more - between 1 to 10 If issue price is less then 500 rs.10
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