For Rights Issue under Section 62(1)(a) of the Companies Act, 2013, request the opinion of learned members on the following:
a) Will the Company requires to allot the shares within 60 days of receipt of application money?
b) Is the Company require to open a seperate account in Scheduled Bank for Rights Issue?
c) Can Share Application Money received under Rights Issue be utilized for any other purpose?
All the abovementioned conditions are applicable in case of private placement (Ref. Section 42). As ROC Bangalore had opined that the restriction of 60 days is applicable for Rights Issue as well (Pls refer Q28 of the Attachment which is a public document), there exists a doubt about the applicability of other requirements of Section 42 vis-a-vis Rights Issue.
Thanks & Regards
Ashish
CAclubindia
