Author name: Admin

Preference shares, a unique class of equity instruments, play a vital role in corporate financing. They offer distinct advantages over common shares, making them an attractive option for companies seeking to raise capital. This article explores the intricacies of issue and redemption of preference shares under the Companies Act, 2013, focusing on their definitions, types, […]

In the realm of corporate finance, equity shares play a pivotal role in capital formation and incentivizing employees. Among the various forms of equity, sweat equity shares have garnered significant attention for their unique characteristics and benefits. These shares are a powerful tool for companies to reward employees for their hard work and contribution, particularly

In the corporate world, shares represent a unit of ownership in a company, and their issuance plays a pivotal role in raising capital for business operations, expansion, and investment. However, the manner in which shares are issued is subject to strict regulations to ensure fair practices and protect the interests of shareholders and the general

The issuance of shares is a fundamental aspect of a company’s capital structure, providing a means for raising funds to support its operations, expansion, and various financial activities. When shares are issued at a premium, it signifies that the shares are sold for more than their nominal or par value. Understanding the application of premiums

The issue of application forms for securities is a critical aspect of the prospectus and allotment of securities in the capital market. It involves the formal invitation to potential investors to subscribe to a company’s securities, be it shares or debentures, as part of an Initial Public Offering (IPO) or subsequent issuance. This article delves

A Red Herring Prospectus (RHP) is a preliminary legal document used by companies before they issue an Initial Public Offering (IPO). It provides essential details about the business, its financial status, and the potential risks associated with investment in the securities offered. Unlike a final prospectus, the RHP lacks details like the issue price and

A Shelf Prospectus is a unique type of prospectus that enables companies to issue securities multiple times without filing a new prospectus for each offering. This article provides a detailed analysis of shelf prospectuses under the Companies Act, 2013, covering related sections, regulatory requirements, and the advantages of using a shelf prospectus. Additionally, it explores

The advertisement of a prospectus is an essential part of raising capital through public offerings. It serves as the initial communication to potential investors, generating interest in the securities on offer and providing key details about the company and the offer. However, to protect investors, these advertisements are highly regulated under the Companies Act, 2013

The concept of securities in a dematerialized (demat) form has revolutionized the way public offers and transactions in the securities market are conducted. A dematerialized form of securities eliminates the need for physical certificates, ensuring safer, faster, and more transparent handling of securities. Under the Prospectus and Allotment of Securities section in the Companies Act,

The concept of “Offer of Sale of Shares by Certain Members of Company” is a key provision under the Prospectus and Allotment of Securities section in the Companies Act, 2013. This article explores the key aspects, legal provisions, compliance requirements, and benefits associated with the sale of shares by certain members in a company. Additionally,