Question

ALLOTMENT LETTER REGRET LETTER

Answer 1

S.R.	ALLOTMENT LETTER	REGRET LETTER
1.	Meaning A letter of allotment is an intimation from the Company to the applicant that a certain number of shares applied for by him have been allotted.	It is a letter from the company to an applicant informing him that no shares could be allotted to him in respect of his application for shares.
2.	Preservation The allottee has to preserve the letter of allotment in order to exchange it against the share certificate.	The letter of regret need not be preserved as it has no value for the receiver.
3.	Occasion 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 is issued when the company could not allot any shares to the applicant who has applied for the shares in response to a public issue of the company.
4.	Contents It states that a certain number of shares are allotted and that the amount in respect of allotment, if any, should be paid within a particular period.	The content of the letter of regret indicates that the number of shares allotted as nil, and the amount of refund order.
5.	To whom sent It is sent to the share applicants to whom shares are allotted.	It is sent to the applicants who are not allotted shares.
6.	Enclosures If the shares are fully allotted, then a refund order for the allotted shares is enclosed. The share certificates may also be enclosed.	The letter of regret is enclosed or attached with a refund order for the amount paid by the applicant, in respect of share application money.
7.	Right/Effect The letter of allotment confers the right of membership on the allottee.	The application does not get any membership rights.