Financial Accounting

project on

SHARES: According to the section 2(46) of the Companys Act 1956, share means a part in the share capital of the company
TYPES OF SHARES :

Preference Shares Equity shares

Sub-division of share capital

Authorised capital: Issued capital: Subscribed capital:

Procedure of issue of shares

Issue of prospectus To receive application Allotments of shares

To make calls on shares

TYPES OF MARKET

PRIMARY MARKET - Initial public offer (IPO)

RIGHT ISSUE (FOR EXISTING COMPANIES) PREFERENTIAL ISSUE

SECONDARY MARKET (STOCK EXCHANGE)

Modes of issue of shares:

company can issue shares in two ways: For cash. For consideration other than cash

Issue of shares for cash:

Issue

of shares at par: of shares at premium:

Issue

Issue

of shares at discount:

Utilization of security premium

Issue

fully paid up bonus shares off preliminary expenses

Write

Pay

premium on the redemption

Buy

back of own shares.

Conditions for issue of shares at discount:

For issue of shares at discount the company has to satisfy the following conditions 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.

SEBI GUIDELINES
Applicability

of the guidelines:

Companies barred not to issue Security: for listing:

Application

Public

Issue By Unlisted Companies:

Public

Issue By Listed Companies

 Partly

Paid-up shares:
by companies issuing securities: Pricing:

Pricing

Differential

Price

Band:

Underwriting:

Basis

of allotment:

OBJECTIVES OF SEBI

Protect the interest of investors in securities

Promote

the development of the security market the securities market

Regulate

FUNCTIONS OF SEBI

Protective Functions Functions

Developmental Regulating

Functions

Depository system (Demat Shares):

Depository

system provides for dematerialization of securities which means their custody and trading in electronic book entry form. A depository is not mere a custodian of securities

Features of Depository System are as follows:

Securities are fungible i.e. they are divisible and can be traded in any quantity Each security is allotted a unique International Security Identification Number (ISIN) by SEBI NSDL is the registered holder in the record of the company (i.e. in the register of member of the company, name of NSDL appears in respect of demated shares instead of the actual holder of shares) Investor is only a beneficial owner Daily Basis Reconciliation is carried out by NSDL as per the Depository Act, 1996.

ACKNOWLEDGEMENT
We express our sincerest gratitude to Professor Mr.Ansari the mission giver And everyone related to project directly or indirectly!!!

GROUP MEMBERS
ARCHANA 08 CHITHRA GRISHMA 22 JYOTI KUNAL 36 FORUM ROMI 50 VIRAJ 57 43 29 15