Dear All,
Can you Please tell what are the provision pertaining to issue price of right shares of a Private Limited Company???
3 Replies
HARDIK
(COMPANY SECRETARY NCFM (Corporate Governance ))
(664 Points)
Replied 08 February 2011
Read Unlisted Companies Prefential Issue Rules.
Ganesh
( Manager)
(75 Points)
Replied 12 February 2011
Thank you for your kind reply HARDIK, But my question intended to " Issue Pricing / Price valuation " of RIGHT Shares of PVT LTD. Unlisted Companies Prefential Issue Rules is for Unlisted Public Company Limited. I wanted exact answer for Private Ltd
It would had been immense help if any qualified member could had given accurate answer for this. Awaiting for quick response
cs ashwini kumar
(Company Secretary in Practice)
(173 Points)
Replied 12 February 2011
Dear Mr. Ganesh,
There may be two alternate for valuation of shares in your case:
1. in case the shares are to be allotted to the foreign investors under FDI, then you will have to follow the DFC (discounted future cash flow) method as required by the RBI under FEMA;
2. in other case, you may follow the CCI guidelines for the valuation of shares.
Best Regards
CS Ashwini Kumar
Recent Topics
- Regarding Perquisite Tax on ESOP - Unlisted Compan
- Casual Taxable Person under GST
- Extended Date of GSTR-1 for the month of July 2020
- NRO Interest - Taxed at source and in Foreign Coun
- Clarity needed on effective date
- Income Tax Refund Deadline Shortened to Five Years
- Rectification Applications for Past GST Demands
- GST Invoices Series
- FILING OF ITR AY 20-21
- CLAIMING OF UNCLAIMED RCM
Related Threads
CAclubindia
