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Financial Accountingproject on

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SHARES:

According to the section 2(46) of the Companys Act1956, share means a part in the share capital of

the company

TYPES OF SHARES :

Preference Shares

Equity shares

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Sub-division of share capital Authorised capital:

Issued capital: Subscribed capital:

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Procedure of issue of shares Issue of prospectus

To receive applicationAllotments of sharesTo make calls on

shares

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TYPES OF MARKET

PRIMARY MARKET- Initial public offer

(IPO)

RIGHT ISSUE (FOR EXISTINGCOMPANIES)

PREFERENTIAL ISSUE

SECONDARY MARKET(STOCK EXCHANGE)

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Modes of issue of shares:

A company can issue shares in twoways:

For cash.

For consideration other than cash

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Issue of shares for cash:

Issue of shares at par:

Issue of shares at premium:

Issue of shares at discount:

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Utilization of security premiumIssue fully paid up bonus shares

Write off preliminary expenses

Pay premium on the redemption

Buy back of own shares.

C di i f i f h

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Conditions for issue of shares atdiscount:

For issue of shares at discount the company has to satisfy the followingconditions given in section 79 of the Companies Act 1956:

At least one year must have elapsed since the company became

entitled to commence business. It means that a new company cannot

issue shares at a discount at the very beginning.

The company has already issued such types of shares. An ordinary resolution to issue the shares at a discount has been

passed by the company.

The resolution must specify the maximum rate of discount at which

the shares are to be issued but the rate of discount must not exceed

10% of the face value of the shares.

The issue must be made within two months from the date of

receiving the sanction of the Company Law Tribunal or within such

extended time as the Company Law Tribunal may allow.

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SEBI GUIDELINES

Applicability of the guidelines:

Companies barred not to issue Security:

Application for listing:

Public Issue By Unlisted Companies:

Public Issue By Listed Companies

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Partly Paid-up shares:

Pricing by companies issuing securities:

Differential Pricing:

Price Band:

Underwriting:

Basis of allotment:

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OBJECTIVES OF SEBI Protect the interest of investors in

securities

Promote the development of the

security market

Regulate the securities market

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FUNCTIONS OF SEBI Protective Functions

Developmental Functions

Regulating Functions

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Depository system (Demat Shares):

Depository system provides fordematerialization of securities which meanstheir custody and trading in electronic book

entry form. A depository is not mere acustodian of securities

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Features of Depository System are asfollows:

Securities are fungible i.e. they are divisible andcan be traded in any quantity

Each security is allotted a unique InternationalSecurity Identification Number (ISIN) by SEBI

NSDL is the registered holder in the record of thecompany (i.e. in the register of member of thecompany, name of NSDL appears in respect of de-mated shares instead of the actual holder of

shares)

Investor is only a beneficial owner

Daily Basis Reconciliation is carried out by NSDLas per the Depository Act, 1996.

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ACKNOWLEDGEMENTWe express our sincerest gratitude toProfessor Mr.Ansari the mission

giver And everyone related to projectdirectly or indirectly!!!

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GROUP MEMBERSARCHANA 08

CHITHRA 15

GRISHMA 22

JYOTI 29

KUNAL 36

FORUM 43

ROMI 50

VIRAJ 57