Preliminaries about Share Capital Issue
Private Placement Sections 42 of Companies Act, 2013 • Rule 14 of the Companies [Prospectus and Allotment of Securities Rules], 2014 Definition of Private Placement • Private Placement means an offer of securities or invitation to subscribe for securities. Offer to a select group of persons by a Company Other than by way of a Public Offer. Through Private Placement Offer Letter Offer/ Invitation to subscribe for shares Maximum 50 persons in one go/ 200 persons in aggregate in one financial year. E xcludes QIB’s [i.e. Qualified Institutional Buyers] and Employees being allotted shares under ESOP [Employees Stock Option Programmes or Employees Stock Option Schemes] Minimum Value of Investment:- Investment size of not less than INR 20,000/- of face value of securities per person Mode of Payment B y cheque or demand draft or any other banking ...