Diffirence b/w preferential allotment & private placement

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AMIT KUMAR (Querist)
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04 July 2015 Hello
Please tell me...what is the difference between preferential allotment and private placement.

Thanks

Pratik Shah

Pratik Shah (Expert)
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07 July 2015 There is no difference between them.
The only thing is 'Private Placement' word is used in Companies Act. Whereas, SEBI uses 'Preferential Allotment' for the same purpose.

You will never find a word 'Preferential Allotment' in Companies Act 2013.

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