An NPO Institution Promoted By Dr. R K S Jain

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Benefits To Angel   arrow

Investors Association Angel group is registered with BSE SME ITP and NSE Emerge ITP exchanges as Angel Investment Group. Our members have invested more than Rs 912.50 lacs in 9 enterprises / industries till date. Our Angel Investor group is having 195 active members as on 30th June 2014. We also conduct seminars and workshops for Angel group regularly to educate them and to sharpen their investment skills.

We help enterprises not only with initi1al capital but also strategic management and financial suggestions to improve the overall performance of the enterprise. This is possible because our Angel Investors are technical and financial experts and have years of experience.

The investment by our members makes the enterprise eligible for listing on BSE-SME – ITP platform and also NSE- Emerge-ITP platform. The benefits to the listed entity and its promoters are summarized as follows:

    1. Listing without public issue: The shares of the company are listed without any public issue and hence owner / promoter have control on 100% shares.

    2.Pride of listed company: the company and promoters can enjoy pride as owner of a listed company.

    3. Valuations: The Company can get real and high valuations based on its real and intrinsic value as 100% shares are owned by the promoters and their associates.

    4. Increase in fund raising capability: The promoters and shareholders can get loan against listed shares and also can provide guarantee for loans by providing these shares as collaterals.

    5. Non applicability of sec 56(2) of The Income Tax Act: The company can buy shares of another company at a deep discount to its net worth and provisions of section 56 (2) of income tax act are not triggered and applicable as this company is a listed company.

    6. Issue of shares a premium: The company can issue shares at a premium as it is a listed company and provisions of section 56 (2) are not applicable.

    7. Merger and Amalgamations: The Company can become good vehicle for merger and amalgamations as provisions of SEBI takeover code are not applicable.

    8. Income tax Exemptions: There is no income tax on the sale of shares more than the cost price as the shares are listed.

    9. Solutions to deposit and other related problem of the companies Act 2013: as per the provisions of The companies Act 2013, all borrowings by the company from investors, other than directors, is to be treated as deposits and stringent formalities are to be complied with for acceptance of deposits.

    As per The Companies Act 2013, directors and shareholders can make investments in companies out of their owned funds and they cannot borrow money and invest in company.

    Listing of companies shares can resolve both these problems. Promoter can sale his shares and from funds received, he can make fresh investments in company thereby fully complying with the provisions. This sale will be exempted from Income tax.

    10. Solutions to Existing borrowings: the problem of existing borrowing, which is put to constructive use, and has to be refunded before March ‘15 to comply with The Companies Act 2013, can be resolved by listing and selling of shares.