{"id":837,"date":"2020-04-29T15:22:47","date_gmt":"2020-04-29T15:22:47","guid":{"rendered":"https:\/\/lex-warrier.in\/archives\/?p=837"},"modified":"2020-05-27T15:37:21","modified_gmt":"2020-05-27T15:37:21","slug":"preferential-issue-of-shares-by-indian-companies","status":"publish","type":"post","link":"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html","title":{"rendered":"Preferential issue of shares by Indian companies"},"content":{"rendered":"<p style=\"text-align: center;\"><span style=\"color: #993300;\"><strong>Widaphi Lyngdoh<\/strong><\/span><br \/>\nStudent of B.A. LL.B (Hons), Batch of 2022<br \/>\nNational Law University, Jodhpur<\/p>\n<hr \/>\n<h2>Abstract<\/h2>\n<p style=\"text-align: justify;\">The Paper discusses the concept of Preferential issue of shares by a company under <a href=\"https:\/\/www.mca.gov.in\/Ministry\/pdf\/CompaniesAct2013.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">The Companies Act, 2013<\/a> (\u2018the Act\u2019), Section 62 (1)(c) to \u2018any person\u2019 which has become a very common practice by companies in order to fulfil their financial requirements arising from new projects, debt-equity ratio considerations, workingcapital requirements and any other purpose. While discussing the meaning and relevance of the concept, the paper also delves into the application and the regulations and laws governing such. Firstly laws governing preferential issue by listed companies, Secondly we will be dealing with regulations and laws for Unlisted companies and lastly this paper while discussing the regulations and procedures which are to be undergone while issuing such shares will also point out the contemporary issues which encircles the preferential issue of shares and analyses to what extend these issues can be a roadblock in the successful implementation of this process.<\/p>\n<p><strong><span style=\"color: #993300;\">Keywords:<\/span>\u00a0<\/strong>Preferential share, SEBI, Companies Act, ICDR, DEMAT<\/p>\n<p><span style=\"color: #3366ff;\"><strong>Preferred Citation:<\/strong><\/span><\/p>\n<p style=\"text-align: center;\"><div class=\"su-quote su-quote-style-default\"><div class=\"su-quote-inner su-u-clearfix su-u-trim\">Widaphi Lyngdoh, Preferential issue of shares by Indian companies, The Lex-Warrier: Online Law Journal, (2020) 4, pp. 122 \u2013 131, ISSN (O): 2319-8338<\/div><\/div>\n<p style=\"text-align: right;\"><a href=\"https:\/\/lex-warrier.in\/archives\/wp-content\/uploads\/2020\/05\/Preferential-issue-of-shares-by-Indian-companies.pdf\" class=\"su-button su-button-style-glass\" style=\"color:#FFFFFF;background-color:#ef792d;border-color:#c06124;border-radius:7px\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"color:#FFFFFF;padding:7px 20px;font-size:16px;line-height:24px;border-color:#f4a26c;border-radius:7px;text-shadow:none\"><i class=\"sui sui-file-pdf-o\" style=\"font-size:16px;color:#FFFFFF\"><\/i> Read the full paper<\/span><\/a>\n","protected":false},"excerpt":{"rendered":"<p>Widaphi Lyngdoh Student of B.A. LL.B (Hons), Batch of 2022 National Law University, Jodhpur Abstract The Paper discusses the concept of Preferential issue of shares by a company under The&hellip;<\/p>\n","protected":false},"author":1,"featured_media":838,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[3],"tags":[],"class_list":["post-837","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-abstract","clearfix","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Preferential issue of shares by Indian companies | The Lex-Warrier<\/title>\n<meta name=\"description\" content=\"concept of Preferential issue of shares by a company under The Companies Act, 2013 (\u2018the Act\u2019), Section 62 (1)(c) to \u2018any person\u2019 which has become a very\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Preferential issue of shares by Indian companies | The Lex-Warrier\" \/>\n<meta property=\"og:description\" content=\"concept of Preferential issue of shares by a company under The Companies Act, 2013 (\u2018the Act\u2019), Section 62 (1)(c) to \u2018any person\u2019 which has become a very\" \/>\n<meta property=\"og:url\" content=\"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html\" \/>\n<meta property=\"og:site_name\" content=\"The Lex-Warrier: Online Law Journal\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/lex.warrier.page\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-29T15:22:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-05-27T15:37:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i1.wp.com\/www.lex-warrier.in\/wp-content\/uploads\/2020\/05\/shares.jpg?fit=1200%2C800\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Lex-Warrier\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@LexWarrier\" \/>\n<meta name=\"twitter:site\" content=\"@LexWarrier\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Lex-Warrier\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html#article\",\"isPartOf\":{\"@id\":\"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html\"},\"author\":{\"name\":\"Lex-Warrier\",\"@id\":\"https:\/\/lex-warrier.in\/archives\/#\/schema\/person\/ab2bb19b344a2bfcbc373777495f8f82\"},\"headline\":\"Preferential issue of shares by Indian companies\",\"datePublished\":\"2020-04-29T15:22:47+00:00\",\"dateModified\":\"2020-05-27T15:37:21+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html\"},\"wordCount\":230,\"publisher\":{\"@id\":\"https:\/\/lex-warrier.in\/archives\/#organization\"},\"image\":{\"@id\":\"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html#primaryimage\"},\"thumbnailUrl\":\"https:\/\/lex-warrier.in\/archives\/wp-content\/uploads\/2020\/05\/shares.jpg\",\"articleSection\":[\"Abstract\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html\",\"url\":\"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html\",\"name\":\"Preferential issue of shares by Indian companies | The Lex-Warrier\",\"isPartOf\":{\"@id\":\"https:\/\/lex-warrier.in\/archives\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html#primaryimage\"},\"image\":{\"@id\":\"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html#primaryimage\"},\"thumbnailUrl\":\"https:\/\/lex-warrier.in\/archives\/wp-content\/uploads\/2020\/05\/shares.jpg\",\"datePublished\":\"2020-04-29T15:22:47+00:00\",\"dateModified\":\"2020-05-27T15:37:21+00:00\",\"description\":\"concept of Preferential issue of shares by a company under The Companies Act, 2013 (\u2018the Act\u2019), Section 62 (1)(c) to \u2018any person\u2019 which has become a very\",\"breadcrumb\":{\"@id\":\"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html#primaryimage\",\"url\":\"https:\/\/lex-warrier.in\/archives\/wp-content\/uploads\/2020\/05\/shares.jpg\",\"contentUrl\":\"https:\/\/lex-warrier.in\/archives\/wp-content\/uploads\/2020\/05\/shares.jpg\",\"width\":1200,\"height\":800,\"caption\":\"Share market in India\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/lex-warrier.in\/archives\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Preferential issue of shares by Indian companies\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/lex-warrier.in\/archives\/#website\",\"url\":\"https:\/\/lex-warrier.in\/archives\/\",\"name\":\"The Lex-Warrier: Online Law Journal\",\"description\":\"ISSN (O): 2319-8338\",\"publisher\":{\"@id\":\"https:\/\/lex-warrier.in\/archives\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/lex-warrier.in\/archives\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/lex-warrier.in\/archives\/#organization\",\"name\":\"The Lex-Warrier: Online Law Journal\",\"url\":\"https:\/\/lex-warrier.in\/archives\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/lex-warrier.in\/archives\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/i2.wp.com\/www.lex-warrier.in\/wp-content\/uploads\/2019\/02\/The-Lex-Warrier-Online-Law-Journal-1.png?fit=496%2C160\",\"contentUrl\":\"https:\/\/i2.wp.com\/www.lex-warrier.in\/wp-content\/uploads\/2019\/02\/The-Lex-Warrier-Online-Law-Journal-1.png?fit=496%2C160\",\"width\":496,\"height\":160,\"caption\":\"The Lex-Warrier: Online Law Journal\"},\"image\":{\"@id\":\"https:\/\/lex-warrier.in\/archives\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/lex.warrier.page\/\",\"https:\/\/x.com\/LexWarrier\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/lex-warrier.in\/archives\/#\/schema\/person\/ab2bb19b344a2bfcbc373777495f8f82\",\"name\":\"Lex-Warrier\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/lex-warrier.in\/archives\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b7ad5c6449779ff1b8138f13b99bc7373067c121ed40965fc4da29ee734eeb28?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b7ad5c6449779ff1b8138f13b99bc7373067c121ed40965fc4da29ee734eeb28?s=96&d=mm&r=g\",\"caption\":\"Lex-Warrier\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Preferential issue of shares by Indian companies | The Lex-Warrier","description":"concept of Preferential issue of shares by a company under The Companies Act, 2013 (\u2018the Act\u2019), Section 62 (1)(c) to \u2018any person\u2019 which has become a very","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html","og_locale":"en_US","og_type":"article","og_title":"Preferential issue of shares by Indian companies | The Lex-Warrier","og_description":"concept of Preferential issue of shares by a company under The Companies Act, 2013 (\u2018the Act\u2019), Section 62 (1)(c) to \u2018any person\u2019 which has become a very","og_url":"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html","og_site_name":"The Lex-Warrier: Online Law Journal","article_publisher":"https:\/\/www.facebook.com\/lex.warrier.page\/","article_published_time":"2020-04-29T15:22:47+00:00","article_modified_time":"2020-05-27T15:37:21+00:00","og_image":[{"width":1200,"height":800,"url":"https:\/\/i1.wp.com\/www.lex-warrier.in\/wp-content\/uploads\/2020\/05\/shares.jpg?fit=1200%2C800","type":"image\/jpeg"}],"author":"Lex-Warrier","twitter_card":"summary_large_image","twitter_creator":"@LexWarrier","twitter_site":"@LexWarrier","twitter_misc":{"Written by":"Lex-Warrier","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html#article","isPartOf":{"@id":"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html"},"author":{"name":"Lex-Warrier","@id":"https:\/\/lex-warrier.in\/archives\/#\/schema\/person\/ab2bb19b344a2bfcbc373777495f8f82"},"headline":"Preferential issue of shares by Indian companies","datePublished":"2020-04-29T15:22:47+00:00","dateModified":"2020-05-27T15:37:21+00:00","mainEntityOfPage":{"@id":"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html"},"wordCount":230,"publisher":{"@id":"https:\/\/lex-warrier.in\/archives\/#organization"},"image":{"@id":"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html#primaryimage"},"thumbnailUrl":"https:\/\/lex-warrier.in\/archives\/wp-content\/uploads\/2020\/05\/shares.jpg","articleSection":["Abstract"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html","url":"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html","name":"Preferential issue of shares by Indian companies | The Lex-Warrier","isPartOf":{"@id":"https:\/\/lex-warrier.in\/archives\/#website"},"primaryImageOfPage":{"@id":"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html#primaryimage"},"image":{"@id":"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html#primaryimage"},"thumbnailUrl":"https:\/\/lex-warrier.in\/archives\/wp-content\/uploads\/2020\/05\/shares.jpg","datePublished":"2020-04-29T15:22:47+00:00","dateModified":"2020-05-27T15:37:21+00:00","description":"concept of Preferential issue of shares by a company under The Companies Act, 2013 (\u2018the Act\u2019), Section 62 (1)(c) to \u2018any person\u2019 which has become a very","breadcrumb":{"@id":"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html#primaryimage","url":"https:\/\/lex-warrier.in\/archives\/wp-content\/uploads\/2020\/05\/shares.jpg","contentUrl":"https:\/\/lex-warrier.in\/archives\/wp-content\/uploads\/2020\/05\/shares.jpg","width":1200,"height":800,"caption":"Share market in India"},{"@type":"BreadcrumbList","@id":"https:\/\/lex-warrier.in\/archives\/preferential-issue-of-shares-by-indian-companies.html#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/lex-warrier.in\/archives\/"},{"@type":"ListItem","position":2,"name":"Preferential issue of shares by Indian companies"}]},{"@type":"WebSite","@id":"https:\/\/lex-warrier.in\/archives\/#website","url":"https:\/\/lex-warrier.in\/archives\/","name":"The Lex-Warrier: Online Law Journal","description":"ISSN (O): 2319-8338","publisher":{"@id":"https:\/\/lex-warrier.in\/archives\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/lex-warrier.in\/archives\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/lex-warrier.in\/archives\/#organization","name":"The Lex-Warrier: Online Law Journal","url":"https:\/\/lex-warrier.in\/archives\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/lex-warrier.in\/archives\/#\/schema\/logo\/image\/","url":"https:\/\/i2.wp.com\/www.lex-warrier.in\/wp-content\/uploads\/2019\/02\/The-Lex-Warrier-Online-Law-Journal-1.png?fit=496%2C160","contentUrl":"https:\/\/i2.wp.com\/www.lex-warrier.in\/wp-content\/uploads\/2019\/02\/The-Lex-Warrier-Online-Law-Journal-1.png?fit=496%2C160","width":496,"height":160,"caption":"The Lex-Warrier: Online Law Journal"},"image":{"@id":"https:\/\/lex-warrier.in\/archives\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/lex.warrier.page\/","https:\/\/x.com\/LexWarrier"]},{"@type":"Person","@id":"https:\/\/lex-warrier.in\/archives\/#\/schema\/person\/ab2bb19b344a2bfcbc373777495f8f82","name":"Lex-Warrier","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/lex-warrier.in\/archives\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b7ad5c6449779ff1b8138f13b99bc7373067c121ed40965fc4da29ee734eeb28?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b7ad5c6449779ff1b8138f13b99bc7373067c121ed40965fc4da29ee734eeb28?s=96&d=mm&r=g","caption":"Lex-Warrier"}}]}},"jetpack_featured_media_url":"https:\/\/lex-warrier.in\/archives\/wp-content\/uploads\/2020\/05\/shares.jpg","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p2ACRt-dv","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/lex-warrier.in\/archives\/wp-json\/wp\/v2\/posts\/837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lex-warrier.in\/archives\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lex-warrier.in\/archives\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lex-warrier.in\/archives\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lex-warrier.in\/archives\/wp-json\/wp\/v2\/comments?post=837"}],"version-history":[{"count":1,"href":"https:\/\/lex-warrier.in\/archives\/wp-json\/wp\/v2\/posts\/837\/revisions"}],"predecessor-version":[{"id":839,"href":"https:\/\/lex-warrier.in\/archives\/wp-json\/wp\/v2\/posts\/837\/revisions\/839"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lex-warrier.in\/archives\/wp-json\/wp\/v2\/media\/838"}],"wp:attachment":[{"href":"https:\/\/lex-warrier.in\/archives\/wp-json\/wp\/v2\/media?parent=837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lex-warrier.in\/archives\/wp-json\/wp\/v2\/categories?post=837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lex-warrier.in\/archives\/wp-json\/wp\/v2\/tags?post=837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}