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Which legal restrictions does the company face while setting-up its capital structure?

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Which legal restrictions does the company face while setting-up its capital structure?

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Legal restrictions:

  • There are various legal restrictions which a company has to follow and hence they affect its capital structure.
  • As per Companies Act, the company raising capital fund through securities has to compulsorily issue equity shares. In addition to this, rules of SEBI and RBI and provision of Companies Act are also to be considered while formulating the capital structure.
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