“8. I nvitation and allotment of securities.-

(1) No fresh offer or invitation shall be made unless the allotment with

respect to any offer or invitation made earlier have been completed in terms

of sub-section (9) of section 60B of the Companies Act, 1956.

(2) Any offer or invitation not in compliance with sub-section (1A) of

Section 81 read with sub-section (3) of section 67 of the said Act, shall be

treated as a public offer and the provisions of the Securities Contracts

(Regulation) Act, 1956 (42 of 1956) and the Securities and Exchange Board

of India Act, 1992 (15 of 1992) shall be complied with.

(3) All monies payable on subscription of securities shall be paid

through cheque or demand draft or other banking channels but not by cash.

(4) Any allotment of securities shall be completed within sixty days

from the receipt of application money and in case the company is not able to

allot the securities within the said period of sixty days, it shall repay the

application money within fifteen days thereafter, failing which it will be

required to be re-paid with interest at the rate of twelve percent per annum:

Provided that the monies received on such application shall be kept in a

separate bank account and shall not be utilised for any purpose other than

(i) for adjustment against allotment of securities; or

(ii) for the repayment of monies where the company is unable to

allot securities.

(5) No company offering securities shall release any public

advertisements or utilise any media, marketing or distribution channels or

agents to inform the public at large about such an offer

[No. F. 2/21/2011-CL V]

Sd/ -

Renuka Kumar

Joint Secretary to the Government of India

Note: - The principle rules were published in the Gazette of India,

Extraordinary, vide notification number G.S.R. 922(E), dated the 4

December, 2003.