What is share application money received?
Share application money is the amount received by a company from applicants who wish to purchase its shares. It is the money received in respect to an initial public offering of shares. This money can be more or less than the actual amount anticipated in respect to the number of shares floated.
What is meant by share application money pending allotment?
Share Application Money Pending Allotment means the amount received on the application on which allotment is not yet made (pending allotment). The process starts when any company publicly issues its equity shares to raise funds.
Can share application money be received in cash?
As per the provisions of this section, even private limited companies will not be allowed to receive share application money in cash. They will require opening a separate bank account for receiving share application cheques and will not be able to use that money till they allot the shares.
What is the procedure for allotment of shares?
Procedure for allotment of shares are as follows:
- Appointment of Allotment Committee: …
- Hold Board Meeting to Decide the Basis of Allotment: …
- Pass Board Resolution for Allotment: …
- Collection of Allotment Money: …
- Arrangement Relating to Letters of Renunciation: …
- Arrangement Relating to Splitting of Allotment Letters:
What is the difference between application money and allotment money?
Share Application Money Pending Allotment means the amount received on the application on which allotment is not yet made (pending allotment). … First, it receives the application money from its applicants and the equity shares are allotted to the respective applicants on a later date.
What is the minimum face value of a share?
What is the minimum face value of a share? The corporations are incorporated with a face value of INR 10, whereas most of them are either, INR 100 or INR 1. SEBI, which regulates the regulations for listing a public limited company in a stock market, defines the minimum face value of INR 1.
What is the maximum share application money?
Provided that the maximum tradeable lot in any case shall not exceed 100 shares. The minimum application moneys to be paid by an applicant along with the application money shall not be less than 25% of the issue price.
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What do you mean by share?
A company’s capital is divided into small equal units of a finite number. Each unit is known as a share. In simple terms, a share is a percentage of ownership in a company or a financial asset. Investors who hold shares of any company are known as shareholders.