[Guidelines for approval [under clause (xix) of sub-section (2) of section 80C or] under clause (xvi) of sub-section (2) of section 88.

20. The Board, before granting approval to a public company, [under clause (xix) of sub-section (2) of section 80C or] under clause (xvi) of sub-section (2) of section 88, shall satisfy itself that the application made to it fulfils the following requirements, namely :—

(1) An application for approval has been made in the Form No. 59 by the public company three months before the [eligible issue of capital].

[Explanation.—For the purposes of this rule, "the eligible issue of capital" means an issue referred to in clause (i) of the Explanation to clause (xix) in sub-section (2) of section 80C or in clause (i) of the Explanation to clause (xvi) in sub-section (2) of section 88.]

(2) Every application shall be accompanied by the following documents, namely :—

(a) a copy of the certificate of incorporation under the Companies Act, 1956 (1 of 1956);

(b) audited balance sheets and profit and loss account for three previous years immediately preceding the previous year in which the application is made :

Provided that where a company has been in existence for a period of less than three years, in that case that company may furnish balance sheet and profit and loss account for the period of its existence.

(3) Every such public company shall invest its total paid-up capital (hereinafter referred to as such capital) raised through equity issue or debentures in the following manner :—

(i) twenty-five per cent or more of such capital shall be invested in the infrastructure facility before the end of one year from the date of approval of the Board;

(ii) the balance of such capital shall be invested within a period of three years from the date of approval.

(4) Every such public company shall submit a certificate from an accountant, as defined in the Explanation in sub-section (2) of section 288, specifying the amount invested in each year, from the date of approval of the Board.

(5) The Board shall pass an order in writing granting approval or refusing approval to such public company, as the case may be :

Provided that no order refusing approval shall be passed by the Board before allowing an opportunity of being heard to the public company.

(6) The Board shall have the power to withdraw the approval granted under sub-rule (5) in the following circumstances, namely :—

(a) if such public company fails to make investments as per conditions mentioned in sub-rule (3); or

(b) if such public company fails to file the certificate referred to in sub-rule (4).]