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Question
Shares of a company can't be issued at ______________.
Shares of a company can't be issued at ______________.
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Solution
The correct option is B Discount
As per the rules of SEBI a company cannot issue shares on discount value. It may violate the rules of SEBI and the companies act 2013A company cannot issue shares at a discount because the loss due to the discounted price is barely managed by any company. Moreover, it leads to the rising in unhealthy competition, companies which have been low graded may provide a discount to investors but at the same time, they fool them with their invaluable working. Thus, to protect the interest of investors, company act 2013 has prohibited the issue of shares at a discounted rate.
As per the rules of SEBI a company cannot issue shares on discount value. It may violate the rules of SEBI and the companies act 2013
A company cannot issue shares at a discount because the loss due to the discounted price is barely managed by any company. Moreover, it leads to the rising in unhealthy competition, companies which have been low graded may provide a discount to investors but at the same time, they fool them with their invaluable working. Thus, to protect the interest of investors, company act 2013 has prohibited the issue of shares at a discounted rate.
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