Issue of Shares - Overview
📌 TL;DR - Issue of Shares Services at a Glance
The Companies Act 2013 provides four primary routes for issuing shares: Rights Issue, Bonus Issue, Private Placement, and Preferential Allotment. Return of allotment in Form PAS-3 must be filed within 30 days (15 days for private placement). Private placement is limited to 200 identified persons per FY. From June 30, 2025, non-small private companies must issue shares only in demat form (Rule 9B). Penalty for non-compliance: up to INR 2 crore. Starting at INR 4,999.
When a company decides to raise capital or reward its shareholders, it does so by issuing new shares. The Companies Act, 2013, provides four primary routes, each with its own legal framework, compliance requirements, and timelines. A misstep - such as exceeding the 200-person limit under Section 42, missing the 30-day PAS-3 window, or issuing shares without a Special Resolution - can result in penalties up to INR 2 crore or the entire amount raised.
Patron Accounting provides end-to-end issue of shares services for private limited companies, OPCs, and unlisted public companies - from board resolution and shareholder approval drafting to PAS-3 return of allotment and MGT-14 filing with the Registrar of Companies (ROC).
Content is reviewed quarterly for accuracy.
