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    Question

    Where a company issues shares at a discount (except in

    the case of Sweat Equity), the company shall be liable to a penalty which may extend to an amount equal to the amount raised through the issue of shares at a discount or ________, whichever is less.
    A ₹1 Lakh Correct Answer Incorrect Answer
    B ₹5 Lakh Correct Answer Incorrect Answer
    C ₹10 Lakh Correct Answer Incorrect Answer
    D ₹2 Lakh Correct Answer Incorrect Answer
    E ₹50,000 Correct Answer Incorrect Answer

    Solution

    Section 53 - Prohibition on issue of shares at discount 1) Except as provided in section 54, a company shall not issue shares at a discount.   (3)  Where any company fails to comply with the provisions of this section, such company and every officer who is in default shall be liable to a penalty which may extend to an amount equal to the amount raised through the issue of shares at a discount or five lakh rupees, whichever is less, and the company shall also be liable to refund all monies received with interest at the rate of twelve per cent . per annum from the date of issue of such shares to the persons to whom such shares have been issued.

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