Section 53 Companies Act 2013 prohibits issue of shares at:

1. Section 53(1) Companies Act 2013: 'Except as provided in section 54, a company shall not issue shares at a discount.' 2. Section 54 permits issue of SWEAT EQUITY shares at a discount (or for non-cash consideration) to directors and employees, subject to conditions. 3. The Companies (Amendment) Act, 2017 inserted Section 53(2A) permitting issue of shares at a discount to a creditor when the value of a debt is reduced under a Statutory Resolution Plan/Debt Restructuring Scheme by RBI/IBC. 4. Violation penalty: company and every officer in default — fine ≥ amount raised, up to twice; officers also imprisonment. 5. Hence option B is correct. _Source: Companies Act 2013 (Act 18 of 2013), Govt. of India MCA — Companies Act 2013, Section 53_