Select the TRUE statement related to the issue/re-issue of equity shares.

Equity Shares can be re-issued at Discount.

The correct answer is Option (2): Equity Shares can be re-issued at Discount.

Option (1): Equity Shares cannot be issued at Discount — False. Section 53 of the Companies Act, 2013 generally prohibits the issue of shares at a discount. However, this statement is not absolutely correct because Section 54 allows the issue of sweat equity shares at a discount to employees or directors. Hence, the statement is legally incomplete.

Option (2): Equity Shares can be re-issued at Discount — True. When shares are forfeited due to non-payment, the amount already received is retained in the Forfeited Shares Account. These shares can later be re-issued at a discount, provided the discount does not exceed the amount forfeited.

Option (3): Equity Shares cannot be issued at premium — False. Shares can be issued at a premium under Section 52, and such premium is credited to the Securities Premium Account.

Option (4): Equity Shares cannot be re-issued at premium — False. Re-issued shares can also be issued at a premium depending on market demand.