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CS Professional · Strategic Management and Corporate Finance · Raising of Funds - Private Funding

Zenith Motors Ltd completed an allotment under a private placement on 10 June. By which date must it file the return of allotment with the Registrar under the Companies Act, 2013?

The return of allotment, with the complete list of allottees, must be filed with the Registrar within fifteen days from the date of allotment. For an allotment on 10 June, the deadline is 25 June. Delay attracts a daily penalty up to the statutory cap.

  1. ABy 25 June, being fifteen days from the date of allotmentCorrect
  2. BBy 10 July, being thirty days from the date of allotment
  3. CBy 9 August, being sixty days from the date of allotment
  4. DBy 25 June, being fifteen days from the date of the offer letter

Explanation

Section 42(8) requires the return of allotment to be filed within fifteen days from the date of allotment. Ten June plus fifteen days is 25 June. Default attracts a penalty of one thousand rupees per day, subject to a cap of twenty-five lakh rupees.

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