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    Issue of debentures on private placement

    Posted By : damini / Published on : 05-Mar-2020 01:43 PM / View : 289 / Comment : 0

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    Dear Members,

    If a public unlisted company wish to issue debentures on private placement basis,
    then as per proviso to rule 14(1) of companies (prospectus & allotment of securities rules)2014 as reproduced below
    Provided further that this sub-rule shall not apply in case of offer or invitation for. non-convertible debentures, where the proposed amount to be raised through such offer or invitation does not exceed the limit as specified in clause (c) of sub section (1) of section 180 and in such cases relevant Board resolution under clause (c) of subsection (3) of section 179 would be adequate:

    According to it the company can issue debentures if issues of ncd is within borrowing limit only by board approval and no need for gm resolution.

    please clarify whether my understanding is correct.

    kindly reply.
    Read more on : placement private debentures issue

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