No allotment made by the company...
The companies Act, 1956 not provide any time period about holding of share application money of Indian investor. But in good corporate practice you should allot him first before alloting shares to another.
In case of allotment to NRI you should allot him with in 180 days from the receiving of money as investment.
Regards
If the company issued shares to NRI then he will allot shares to him within 180 days and if allotment is not made within time. you have two options:
1. Either make application for con donation of delay to RBI with sufficient reason. or
2. Refund the investment money within time or pay interest accordingly.
RBI guidelines applicable on both public company as well as private company.
Regards
Guest
Offcourse public company has to allot shares within 60 days from the receipt of application money and in case the company is not able to allot the securities within the period of sixty days, it shall repay the application money within fifteen days thereafter, failing which it will be required to be re-paid with interest at the rate of twelve percent per annum.
Thanks all
Guest
PLEASE MAKE ME CORRECT IF I AM WRONG........
Guest
AOA does not supercede what is provided in the act/rules.
Rate mentioned in Rules will prevail over what is mentioned in AOA as per section 9 of the companies act.
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