requisite provision of Depository Act 1996 and regulations

There seems to be a drdfting mistake in this section. A company which is already listed cannot make an initial offer, The intention seems to be that all

issues ofRs. 10 crore or more when the company proposes to list those securities or when its securities are already listed, must be made in demat form].

SubsC(IUent Allotment of Shares. All the ‘Special Provisions’

regarding the ‘First Allotment of Shares’ (discussed above), except No.3 (minimum subscription must be received) and NO.4 (application money must be

deposited in a scheduled bank) apply equally to any subsequent allotment of shares offered to the public for subscription by a public company [Section

69(7)].

Allotment of Debentures. The ‘Special Provisions’ regarding the ‘First Allotment of Shares’ (discussed above) except No.2 (at least 5% of the face value to

be received as application money), No.3 (minimum subscription must be received), and No.4 (application money must be deposited in a scheduled bank)

apply to the allotment of debentures. whether initial or subsequent issue, in the case of a public company which invites public for subscription.

Irre’1Jlar Allotment and Its Effect (Section 71). An allotment is irregular where it does not comply with statutory provisions as laid down under the

Companies Act as discussed above. In other words, an allotment made by a public company shall be called ‘irregular allotment’ in the following cases: