Checklist
for Preferential Allotment in case of Foreign Direct investment
 |
| Preferential Allotment |
What is Preferential Allotment
Preferential
allotment of shares refers to the procedure of bulk allotment of fresh shares
to a specific group of individuals, venture capitalists, companies, or any
other person by any particular company. This process is termed as the
preferential allotment of shares as per Section 62(1)(c) of Companies Act 2013.
STEPS
1. Conduct a
Board Meeting ( approve EGM notice and Proposal for Allotment)
2. Call Extra Ordinary
General Meeting to obtain consent of
members for allotment of equity share
3. Conduct
board meeting for allotment of shares (e.g lets suppose 2 tranches has came in India
at two different dates, 1st april and 10th April. So in this case two Board meeting
shall be conduct for each allotment at different dates)
4. File PAS-3 in 15 days of allotment and
MGT-14 within 30 days of allotment ( First file MGT-14 and put SRN of MGT-14 in
PAS-3 then file PAS-3)
Note: In case all
tranche received and allotment made in 30 days of received date, in that case
one PAS-3 can be filed for all allotments
5. File FCGPR form on firms.rbi.org.in Portal
( within 30 days from date of issue of Capital Instruments)
Documents
Required for Above Purpose
1. Copy of certified True copy of Board
resolution
2. Copy of
Special Resolution (For MGT-14)
3. Explanatory
Statement (For MGT-14)
4. List of
Allottee ( for PAS-3)
5. FIRC copy
form AD Bank
6. Valuation Report (Merchant Banker or Regd Valuer)
7. KYC of
Foreign Investor 6 pointer prescribed by RBI( If Remitter and investor is
different obtain from both)
8. Obtain a Certificate from Company Secretary in
Practice
Note: While filling FCGPR , if there is any excess amount amount is
left with issuer after allotment, in that case issuer has to clarify that how
that excess amount be used either refund or use for further issuance in future,
attach clarification letter on firms Portal
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