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    Question

    Which section of the Companies Act delas with the

    provisions relating to the prohibition on issue of shares at discount?
    A Section 33 Correct Answer Incorrect Answer
    B Section 43 Correct Answer Incorrect Answer
    C Section 53 Correct Answer Incorrect Answer
    D Section 63 Correct Answer Incorrect Answer
    E Section 73 Correct Answer Incorrect Answer

    Solution

    The Companies Act, 2013 section dealing with the prohibition on issuing shares at a discount is  Section 53 , which states that shares generally cannot be issued below their face value, with limited exceptions like sweat equity or debt restructuring under RBI guidelines, making the issued shares void and punishable if contravened.  Section 53:  Explicitly prohibits issuing shares at a discount, making such shares void, except for permitted instances like sweat equity shares (Section 54) or debt-to-equity conversion under RBI rules.

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