10,000 when no public offer is made and allotment

been made without filing “ith the Registrar, the statement in lieu of prospectus . at least three days before the first allotment of shares [Sec. 70 (4)].

Allotmcnt Proccdurc. The procedure of allotment of shares or

debentures is given bclow

1. Sorting nut of Applications. After the close of the subscription list. the company sorls out the alJldications for shares or debentures received according

to different kinds of shares or debentures issued. Usually the applications along ,,:ith the application money are received by the company baukers and

enterc:! in the Application and Allotment Register either serially or alphabetically.

2. Allotmcnt PoliC)’. When applicati(jns are received equal to or less than the shares issned, there is no problem of allotment policy because everybody

applied for the shares shall get the share applied for. But where the issuc is O’cr-subscribcd. the policy of allotment is needed or on what basis should

the company allot the shares? In such a case the following policy

may be adopted- .

(0) Whc..c shares are listcd on a stock cxchangc, the board of directors of the company. a small sub-conllnittee of directors is fonned to decide the basis

of allotment of shares in accordance with the guidelines issued by the Securities and Exchange Board ofIndia (SEBI) in this regard. In terms qfthe

allotment policy so decided, the secretary shall prepare a provisional statement of allotment and submit the smne to the board of directors for

consideration. The board will then pass an allotment resolution and shall issue instructions to the secretary to write a letter of allotment or letters of regret,

as the case may be. to the applicants.