(a) whether there is a provision for paying premium over the face value
of shares;
(b) if so, the authority which decides the said premium;
(c) whether the interests of share holders are safeguarded in this matter;
(d) if so, the details thereof; and
(e) if not, the reasons therefor?
MINISTER OF STATE IN THE MINISTRY OF FINANCE(SHRI NAMO NARAIN MEENA)
(a) : Yes, Sir.
(b) : The issuer company in consultation with the merchant banker(s)
decides the issue price.
(c)to (e) : SEBI (Disclosures and Investor Protection) Guidelines, 2000
give freedom to a company making an issue of capital to price its
securities subject to certain disclosures including disclosing the
basis for issue price in the prospectus with the help of relevant
qualitative and quantitative factors. These disclosures help investors
to make informed decisions.