Dear Sir
Greetings!
Section 23 sub-section (1) of the Companies Act, 2013 provides that a public company may issue securities -
(a) to public through prospectus (herein referred to as "public offer") by complying with the provisions of Part I of Chapter III (Prospectus and Allotment of Securities)
(b) through private placement by complying with the provisions of Part II of Chapter III (Prospectus and Allotment of Securities)
(c) through a rights issue or a bonus issue in accordance with the provisions of this Act and in case of a listed company or a company which intends to get its securities listed also with the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992) and the rules and regulations made thereunder.
Therefore, the above provision makes it clear that a Public Company can issue securities through private placement.
Thank you!
Is trade payable reported in Form DPT-3?
Click here to view / answer Share it on
Hello All,
Is it mandatory to get the KYC of directors certified by practicing professional while attaching the same in the Form STK-2?
Hello All,
Is Section 14 applicable when changing the name of the company? Are we required to file 2 MGT-14 separately for the purpose or single MGT-14 will work?
Dear All,
What is the validity period for Private Placement Offer Letter, i.e. what should be the time period to apply for the shares under Private Placement?
Dear All,
What valuation guidelines are used while reporting foreign equity investment for listed companies?
Dear All,
Are we required to file FLA return if we have current investments from a foreign country?
Dear All,
What is the downstream investment?
Dear All,
What attachments are required to file a start up for a company?
Dear Sir,
Greetings!
This is in reference to section 42 of companies act 2013 read with Rule 14 of the Companies (Prospectus and Allotment of Securities) Rules, 2014.
as per section 42(1)
A company may, subject to the provisions of this section, make a private placement of securities.
therefore it is clear from the language of law that every company including a public company may come with private placement,
Thank you!