Karan holds 2500 equity shares of a listed company. The nominal value of these shares is ₹10 each having ₹5 paid-up on each share. As per the latest quote on the National Stock Exchange, market value of these shares is ₹

Provisions of the Companies Act, 2013: As per the Explanation to Section 151 of the Companies Act, 2013 , "small shareholder" means one holding shares of nominal value of not more than ₹20,000 or such other sum as may be prescribed. Thus, in deciding whether a shareholder is a small shareholder or not, the nominal value of the shares held is relevant. It does not matter how much is the paid-up value or the market value of the shares. Application to the given case: Karan holds 2500 equity shares. The nominal value of each share is ₹10. Total nominal value of shares held by Karan = 2500 shares × ₹10/share = ₹25,000. Conclusion: In view of the above, Karan's total nominal value of shares is ₹25,000, which is more than the prescribed limit of ₹20,000 for a small shareholder. Therefore, Karan will **not qualify as a small shareholder** of the company.