22 January 2016
provisions contained in rule 14 of companies act (prospectus and allotment of securities rule) are for private offer or public issue of shares or given in general i.e. some rules are for private issue and some relate to public issue of shares?
23 January 2016
This rule is private placement of shares.
Private placement means: Any offer of securities or invitation to a selected group of persons by a company (other than by way of public offer) through issue of a private placement offer letter and which satisfies the conditions specified in section-42. Section 42 of the Companies Act, 2013 allows any company, whether private or public, to make private placement of securities through issue of a “Private Placement Offer Letter” (PPOL). 'Private Placement' can be said in consonance with the interpretation of the Supreme Court as "any offer of securities or invitation to subscribe securities to a select group of persons by a company (other than by way of public offer) through issue of a private placement offer letter and which satisfies the conditions specified in this section including the condition that he offer or invitation is made to not more than 200 persons (excluding QIB's and employees offered securities under ESOP) in a financial year".
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