Advocate Nishant Mehrotra practices at Allahabad High Court. He enrolled with the Bar Council of Utt... Read More
Subscription Capital For New Shares
How To Deal With The Situation If The Subscription Capital For New Shares Is Not Enough Despite An Investor’s Lot Winning?
- Sector-1, Noida
The investor shall observe the obligation of capital settlement based on the result of lot winning and ensure sufficient capital for subscription for new shares in his/her capital account on the T+2 day. An investor will be deemed to abandon the subscription in case of insufficient subscription capital, and the new shares for which subscription is abandoned shall not be registered in the investor’s securities account. If an investor accumulatively abandons subscription for 3 times within 12 consecutive months, he/she will be listed among those restricted from subscription. Within 6 months (180 natural days, the next day included) since the clearing participant’ latest application for the investor’s abandoning of such subscription, the investor shall not be allowed to subscribe for new shares online.
Answered on 28 Sep 2018
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