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Companies (issue of Capital) Rules 1996
06-18-2010, 03:06 AM
Post: #1
Companies (issue of Capital) Rules 1996
what does mean LOAN BASED PROJECT?
eQUITY BASED PROJECT?
It means for what financing is required or anything else?????
Kindly explain this concept???
and

Expalin the term sponser it is financial instituition or company itself?

with regard to ISSUE ON PREMIUM
1. Premium should not be in excess of the premium charge on placement with foreigne instituitio.. if company have not placed the shares then????
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06-18-2010, 05:34 AM
Post: #2
 
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by hmmm</i>
<br />what does mean LOAN BASED PROJECT?
eQUITY BASED PROJECT?
It means for what financing is required or anything else?????
Kindly explain this concept???
and

Expalin the term sponser it is financial instituition or company itself?

with regard to ISSUE ON PREMIUM
1. Premium should not be in excess of the premium charge on placement with foreigne instituitio.. if company have not placed the shares then????
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Loan based project is one which is principally financed by a loan..and equity based is opposite..

Sponsor means the persons(both natural and/or artificial) that are behind the proposed company

premium on issue means amount in excess of nominal value..
shares alloted to institutional investors as well as general public are charged a premium...what is beings said is that if premium to institutional investor is Rs.2 per share then the same premium should be charged when allocating shares to public..

logic is that institutional investors are allocated share capital before allocation to general public.....so the purpose is to protect the general public...
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06-20-2010, 03:27 AM
Post: #3
 
it means whenever compay issue sheres to general public it must first issue it to instituition?? e.g investment bank or commercial bank?

as per my understanding Placement mean issue shares to selected instituitions instead of general public???
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