The company has accpeted Rs.2 lacs from foreign promoter(body corporate) as subscription money at the time of its incorporation in 2003 and issued shares fro rs. 1 lac only and had utilised the remaining Rs. 1 lac for its own use in the operations of the company and shares for Rs. 1 lac to the promoter has not been alloted till today . Now the RBI is questioning why till today the shares for Rs.1 lac has not been alloted.
01 August 2011
Dear Priya, The shares had to be allotted within 180 days from the date of receipt of the inward remittance or by debit to the NRE/FCNR (B) account of the non-resident investor. This is contravention of FEMA because in case the shares were not allotted the amount had to be refunded to the foreign party. The company should go for compounding of offence. Please be free to write for further clarification. Regards, CA. Sudha G. Bhushan Sudhag999@gmail.com
CAclubindia
