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Private placement offer letter duration

Swati Sharma (TRAINEE) (328 Points)

23 March 2018

Dear Members,

If application money is coming in tranchesthen what should be the private placement offer letter duration??as it required to be mentioned in PAS-4

will it be till full money is received(full money will be received in 4 months) ? or we can keep it say15 days..and in application, the investor can mention that he will pay in tranches.

Regards

Sonia

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2 Replies

Jatin Bajaj (CS) (2930 Points)
Replied 24 March 2018

All the application money even in tranches shall be received maximum within 60 days from date of receipt of first application money as the shares has to be allotted witthin 60 days of receipt of application money. if shares are not allotted within 60 days of application money then entire application money shall be refunded within 15 days. if not refunded within 15 days then intrest shall be charged from 61st day and it shall be treated as deposits.

And no further shares are allotted in private placement before any allotment is not completely made.

So full application money even in tranches shall be received within 60 days of first application money