ISSUE OF SHARE AT DISCOUNT IS NOT ALLOWABLE:

ISSUE OF SHARE AT DISCOUNT IS NOT ALLOWABLE:

According to companies act 2013 issue of share at discount is prohibited. Therefore if any company issue share at discount is violated the provision of the act. Although issue of share at discount is prohibited but there is one exception under which share can be issued at discount. When company issues sweat equity shares it means the company issues shares at a discount.  

PUNISHMENT FOR VIOLATION OF PROVISION:

1.       The company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees.

2.       Every officer in default shall be punishable with imprisonment for a term which may extend to six month or with fine which shall not be less than 1 lakh and which may be extend to 5 lakh rupees, or with both.