Bonus issue
rohit suneja
(Querist) 29 June 2009
This query is : Resolved
our company is unlisted company, we want to revalue the land & want to issue the bonus shares on that account . can we do that please reply supported with case laws & sections. also plz tell that are sebi guidelines are applicable on us.
Nehal
(Expert) 30 June 2009
SEBI Regulations are applicable only to a listed company or to a Company which is going to be listed. Since the referred company is unlisted,SEBI regulations are inapplicable in your case.
You can issue bonus shares only from free reserves. Since you have stated that the reserves for bonus issue would be created on revaluation of a capital asset, the Company, the proposed issue is not possible. You can download the bonus issue rules from www.mca.gov.in. There is no specific section for bonus issue.
rohit suneja
(Querist) 02 July 2009
sir
as you said that bonus issue can be from free reserves,but also as you said sebi guidelines are not applicable to us then why we cant issue such shares, further comapny act is almost silent on this issue & sebi guidelines are not applicable on us, then i think we can go for bonus issue. plz repy in detail. any way thanks for other part of the answer.
