Is there any preference while doing the allotment? – InterviewSolution

1.	Is there any preference while doing the allotment?
Answer» PREFERENTIAL ALLOTMENT is the process by which allotment of securities/shares is done on a preferential basis to a SELECT group of investors. In this COMPANY makes bulk allotment of Shares/ Securities to individuals, companies, venture capitalists or any other person through a fresh issue of shares. A preferential issue is an issue of shares or of convertible securities by listed companies to a select group of persons under Section 81 of the Companies Act, 1956 which is neither a rights issue nor a public issue. This is a faster WAY for a company to raise equity capital.

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