preetham
asked over 3 years ago
What do you mean by share allotment letter?
narahari
answered about 3 years ago
A letter of allotment is intimation from the Company to the applicant that certain number of shares applied for by him, have been allotted. The allottee has to preserve the letter of allotment in order to exchange it against the share certificate. It is issued by the company when the shares are allotted to the applicant in response to the public issue or rights issue of the company.
lochan
answered over 3 years ago
**SHARE ALLOTMENT LETTER** A letter of allotment is intimation from the Company to the applicant that certain number of shares applied for by him, have been allotted. The allottee has to preserve the letter of allotment in order to exchange it against the share certificate. It is issued by the company when the shares are allotted to the applicant in response to the public issue or rights issue of the company. It states that certain number of shares is allotted, and that the amount in respect of allotment, if any, should be paid within a particular period. It is sent to the share applicants to whom shares are allotted. If the shares are fully allotted, then a refund order for the unalloted shares is enclosed. The share certificates may also be enclosed. Thanks
