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      Question

      What are the exceptions to the Prohibition on the issue

      of shares at a discount?
      A Sweat Equity Shares Correct Answer Incorrect Answer
      B Shares issued to the Creditors in pursuance of debt restructuring scheme Correct Answer Incorrect Answer
      C Shares issued to the Creditors in pursuance of any statutory resolution plan Correct Answer Incorrect Answer
      D All the above Correct Answer Incorrect Answer
      E Both (a) and either (b) or (c) Correct Answer Incorrect Answer

      Solution

      Section 53.Prohibition on issue of shares at discount - (2A) Notwithstanding anything contained in sub-sections (1) and (2), a company may issue shares at a discount to its creditors when its debt is converted into shares in pursuance of any statutory resolution plan or debt restructuring scheme in accordance with any guidelines or directions or regulations specified by the Reserve Bank of India under the Reserve Bank of India Act, 1934 or the Banking (Regulation) Act, 1949.

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