ALLOTMENT OF SHARES

Allotment of shares is an appropriation of a certain number of shares to an applicant and distribution of shares among those who have submitted written application. It is governed by companies act, 2013 and rules & regulations incorporated therein and for Listed Companies) whose shares are listed on the NSE and BSE or any other applicable Stock exchanges in India and whose shares are freely tradable without any restrictions) and Subsidiary of Listed Companies the provisions of SEBI act, 1992 and the securities contracts (regulation) act, 1956, are also applicable 

MODE OF ALLOTMENT OF SHARES: 

 1. A public company may allot shares in the following ways: 

    a. to public through prospectus (public offer) 

    b. through private placement 

    c. through a rights issue or a bonus issue 

 2. A private company may allot shares in the following ways: 

     a. through a rights issue or a bonus issue 

     b. through private placement/ preferential Allotment 

PROCEDURE FOR ALLOTMENT OF SHARES (PRIVATE COMPANY)
1. A notice is sent to all the shareholders for convening the Extra Ordinary General Meeting for the approval of the private placement offer letter.
2. A private placement offer letter is being drafted.
3. Resolution is passed in the Extra Ordinary General Meeting (EGM)
4. Form MGT-14 is filed with ROC (Registrar of Companies) within 30 days of passing a special resolution in the meeting of shareholders.
5. An offer letter is issued in Prospectus and Allotment of Securities ( PAS-4) within 30 days of passing Special resolution.
6. After this, a complete record of Private placement is prepared in Prospectus and Allotment of Securities( PAS-5).
7. Form PAS-4 and Form PAS-5 are filed with the ROC within 30 days of the issue of the offer letter in Form GNL-2.
8. Allotment of shares is made within 60 days of receipt of Money from the persons to whom the right was given.
9. A Board meeting for Allotment of shares is called.
10. PAS 3 is filed with ROC within 30 days of Allotment.

PROCEDURE FOR ALLOTMENT OF SHARES (PUBLIC COMPANY)
1. The first step towards raising money for a company is done by issuing the shares. A Prospectus is an invitation to the public for the purchase of shares in the company.
2. Receiving of application from the interest applicants.
3. Next step is the allotment of the shares and the decision of the allotment of shares is taken by the company. 

REQUIREMENTS FOR ALLOTMENT OF SHARES

1. Article of Association of the Company must not restrict the right to make such allotment

2. Authorise capital of the Company must have the limit to allot the required shares

3. Name of the Allottee

4. Fathers Name of the Allottee

5. Full address with PIN

6. No of shares to be Allotted

7. PAN card copy of the person

8. Aadhar Card Copy of the person