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ALLOTMENT OF SECURITIES BY COMPANY [SECTION 39]
After public offer, any allotment shall be made only if the amount stated in the prospectus as minimum amount has been subscribed. The sum payable on application for the amount so stated as minimum amount has been paid to and received by the company by cheque or other instrument.
There is no clarity yet, what will be these instrument and why the term other banking channel has not been included.
The amount payable on application on every security shall not be less than five percent of the nominal amount of security or such other percentage or amount as may be specified.
If the stated minimum amount has not been subscribed and the sum payable on application is not received within a period of thirty days from the date of issue of the prospectus, all amount received shall be returned within prescribed time and in prescribed manner.
The company shall file with the Registrar of Companies a “Return of Allotment” in prescribed manner.
In case of any default, the company and its officer who is in default shall be liable to a penalty, for each default, of one thousand rupees for each day during which such default continues or one lakh rupees, whichever is less.
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AishMGhrana 