Statutory Meaning & Definition
Issue of shares or convertible securities to a select group of persons at a price determined under SEBI ICDR Regulations. Requires special resolution. Price must be higher of 26-week or 2-week average of weekly high-low of stock.
Frequently Asked Questions (FAQs)
What is Preferential Allotment in Indian corporate law?
Issue of shares or convertible securities to a select group of persons at a price determined under SEBI ICDR Regulations. Requires special resolution. Price must be higher of 26-week or 2-week average of weekly high-low of stock.
Why is Preferential Allotment important for compliance?
Preferential Allotment is regulated by the Securities and Exchange Board of India under applicable SEBI regulations. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Who should know about Preferential Allotment?
Preferential Allotment is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with SEBI regulatory matters in India.
Contextual Analysis & Regulatory Circulars
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