Shiv (Article assistant) (48 Points)
02 June 2010I have to issue of fresh issue of shares in private company. We have to issue shares to one of the indian director and to a NRI. The problem is the Indian director wants the issue at par i.e. Rs. 10, where as the same has been charged to NRi at Rs. 500 / share. Is this possible? if yes, then how to do this and what would be the legal compliance? kindly help.
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 02 June 2010
For me it is possible.
You have to pass 2 separate board resolutions for allotment of equity and also have to file 2 separate from 2 with ROC within 30 days of allotment in the board meeting.
But later ROC may object and ask for the justification regarding different allotment price.
Wait for other opinions.
Thanks
raspreet kaur
(job)
(55 Points)
Replied 03 June 2010
NO PROBLEM MAY ARISE COZ AS PER THE FDI GUIDELINES THE PRICE AT WHICH SHARES ARE ISSUED TO NRIs SHOLULD NOT BE LESS THAN THE FAIR MARKET VALUE OF SHARES.
SO THIS MUST BE ENSURED THAT RS. 500 AT WHICH THE SHARES ARE ISSUED TO NRIs IS NOT LESS THAN THE FAIR MARKET VALUE OF SHARES.
THIS CAN BE JUSTIFICATION FOR DIFFERENTIAL PRICING.
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
CAclubindia
