02 January 2010
There is a private limited company. It is subsidiary of foreign co. it has received share application money from its holding foreign company. Now my query is what is the time limit for issuing share to the holding co.
When ever foreign exchange involved in share application money, as per RBI guidelines it should be alloted with in 6 months otherwise the Forex should be refunded to the applicant however there is no specific provision and time limit in the companies Act 1956 regarding allotment of issued shares capital by a private company.
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