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    About Private Placement?

    Posted By : Sohil / Published on : 29-Mar-2022 05:54 AM / View : 604 / Comment : 2

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    Can a public company come with the private placement?
    Read more on : placement private

    • 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!

      29-03-2022 / 06:22:25 AM
      Reply
    • 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! 

      29-03-2022 / 06:41:31 AM
      Reply
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