As per Section 39 of Indian Companies Act 2013 allotment of securities should as per the guideline mentioned in this section. Provision in the Companies Act 2013 related to Allotment of Securities by the Company is as under.
(1) No allotment of any securities of a company offered to the
public for subscription shall be made unless the amount stated in
the prospectus as the minimum amount has been subscribed and the
sums payable on application for the amount so stated have been paid
to and received by the company by cheque or other instrument.
(2) The amount payable on application on every security shall not be
less than five per cent. of the nominal amount of the security or
such other percentage or amount, as may be specified by the
Securities and Exchange Board by making regulations in this behalf.
(3) 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, or such other period
as may be specified by the Securities and Exchange Board, the amount
received under sub-section (1) shall be returned within such time
and manner as may be prescribed.
(4) Whenever a company having a share capital makes any allotment of
securities, it shall file with the Registrar a return of allotment
in such manner as may be prescribed.
(5) In case of any default under sub-section (3) or sub-section (4),
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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How to allot securities by Company What the is process Section 39 of Indian Companies Act 2013