ALLOTMENT LETTER REGRET LETTER

                  ALLOTMENT LETTER
REGRET LETTER
Meaning
A letter of allotment is intimation from the Company to the applicant that certain number of shares applied for by him, have been allotted.


Preservation
The allottee has to preserve the letter of allotment in order to exchange it against the share certificate.


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.

Contents
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.


To whom sent
It is sent to the share applicants to whom shares are allotted.

Enclosures
If the shares are fully allotted, then a refund order for the unalloted shares is enclosed. The share certificates may also be enclosed.

Right/Effect
The letter of allotment confers the right of membership on the allottee.




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.



The letter of regret need not be preserved as it has no value for the receiver.



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.


The content of the letter of regret indicates that the number of shares allotted as nil, and the amount of refund order.



It is sent to the applicants who are not allotted shares.



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.


The application does not get any membership right.

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