Clause 12 - Amendment of section 53. - Companies (Amendment) Bill, 2017

Amendment of section 53. 12. In section 53 of the principal Act,- ( i ) in sub-section ( 2 ), for the words discounted price , the word discount shall be substituted; ( ii ) after sub-section ( 2 ), the following sub-section shall be inserted, namely:- (2A) Notwithstanding anything contained in sub-sections ( 1 ) and ( 2 ), a company may issue shares at a discount to its creditors when its debt is converted into shares in pursuance of any statutory resolution plan or debt restructuring scheme in accordance with any guidelines or directions or regulations specified by the Reserve Bank of India under the Reserve Bank of India Act, 1934 (2 of 1934) or the Banking (Regulation) Act, 1949. (10 of 1949).