What is the maximum amount of discount at which forfeited shares can be re issued?

2. In case of the forfeited shares were originally issued at discount, then these forfeited shares can be reissued with the maximum discount equal = amount forfeited on the re-issued share + the discount allowed at the time of original issue.

What is the minimum price at which forfeited shares can be reissued?

Here is your answer. The Re-issue price of forfeited shares must be at least equal to the difference between the paid up value of Re-issued Shares and the Amount Forfeited on Re-issue Shares. In other words, Re-issue price must not be less than the amount unpaid on Forfeited Shares. Regards.

Can the forfeited shares be re-issued at a discount?

These shares can be reissued at par, at premium or at discount. … The amount of discount allowed at the time of reissue in no case should be more than the amount forfeited on such shares.

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What is the minimum amount a share can be issued at?

The answer is simple: There is no minimum limit to start investing in the Indian stock market. You simply need to have sufficient capital to cover the price of a stock. So, you do not need a huge amount of money to start trading in India. It is possible to buy stocks for even less than Rs 10!

When surrendered shares are reissued is debited?

If a share is reissued at a loss, on reissue Bank is debited with cash received, Forfeited Shares Account is debited with loss suffered (or discount allowed) and Share Capital Account is credited will the total of the two amounts which is the paid up value of reissued shares.

What is the maximum limit of premium on shares?

Maximum limit of Premium on shares is – No limit.

Can forfeited shares be re issued at a discount if so to what extent where would you transfer the balance left in the share forfeited account after the re issue of such shares?

If the discount allowed on reissue of shares is less than the forfeited amount, there will be some balance left in the Forfeited Account, which should be transferred to capital reserve, because it is a profit of capital nature. ADVERTISEMENTS: Example: A company forfeited shares of Rs.

When forfeited shares are issued at premium The premium amount is credited to?

In case the shares were issued at premium and the premium money has become due but has not been paid by defaulting shareholder, then any credit already given to ‘Securities Premium Reserve Account’ must be debited (cancelled) at the time of forfeiture of shares.

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When shares are forfeited share capital account is?

When shares are forfeited, share capital account is debited. Explanation: Share Capital Account represents the liability of the company as it is the amount that is borrowed from the public. Therefore, at the time of forfeiture of shares, it is debited with a called-up amount.

What is the time limit for allotment of shares?

On passing the resolution for allotment of shares, the allotment of shares must be done within 60 days of receiving the application money for the same. File the forms with ROC: The company must file the Form PAS -3, within 30 days from the allotment of the shares with the Registrar of Companies.

How many shares can I buy maximum in India?

In the case of equity trades, the maximum limit is 1,00,000 shares in a single order (subject to change at the discretion of our RMS team).

How forfeited shares are re issued?

The company requires to pass a resolution in its Board Meeting for the re-issue of forfeited shares. Re-issue of forfeited shares is a mere sale of shares for the company. A company does not make allotment of these shares. The company auctions the forfeited shares and disposes them off.