1
Question
Which of the following type of security can be issued at discount as per Companies Act, 2013?
(1) Equity Shares
(2) Sweat Equity Shares
(3) Preference Shares
(4) Debentures
(5) Bonds
Select the correct answer from the options given below -
Which of the following type of security can be issued at discount as per Companies Act, 2013?
(1) Equity Shares
(2) Sweat Equity Shares
(3) Preference Shares
(4) Debentures
(5) Bonds
Select the correct answer from the options given below -
Open in App
Solution
The correct option is C (2), (4) & (5) only
When securities are issued at a price lower than their face value, they are said to have been issued at a discount. Sweat equity shares means such equity shares as are issued by a company to its directors or employees at a discount or for consideration, other than cash, for providing their know-how or making available rights in the nature of intellectual property rights or value additions. Also, debentures and bonds are allowed to be issued at discount as only shares apart from sweat equity shares is allowed for discount.
When securities are issued at a price lower than their face value, they are said to have been issued at a discount.
Sweat equity shares means such equity shares as are issued by a company to its directors or employees at a discount or for consideration, other than cash, for providing their know-how or making available rights in the nature of intellectual property rights or value additions. Also, debentures and bonds are allowed to be issued at discount as only shares apart from sweat equity shares is allowed for discount.
Suggest Corrections
0
Similar questions
View More
Join BYJU'S Learning Program
Explore more
Join BYJU'S Learning Program
