private placement

Gist of Private Placement- Section 42 of Companies Act, 2013

Company Law - Gist – As per Section 42 of Companies Act, 2013 Private Placement – Meaning • means any offer or invitation to subscribe or issue of securities • to selected group of persons by a company (Other than by way of Public Offer) through Private Placement offer-cum application letter (PAS 4) ; Other Imp points • […]...

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Procedure for issue of Shares on Private Placement basis

Company Law - Process for issue of Shares through Private Placement under Companies Act, 2013 & SEBI (LODR) Regulations, 2015 SR. NO. PROVISIONS UNDER THE COMPANIES ACT, 2013 SR. NO. PROVISIONS UNDER SEBI (LODR) REGULATIONS, 2015 1. The Company shall obtain the Valuation Report for price determination and its justification; [Note: Relevant date for...

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Meaning, Provisions & Procedure For Issue of Shares Via Private Placement

Company Law - Private placement by companies means offering their securities or inviting to subscribe its securities to the selected group of persons other than by the way of a public issue through a private placement offer letter....

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Private Placement by unlisted public and private companies

Company Law - ISSUE OF SHARES UNDER PRIVATE PLACEMENT BY UNLISTED PUBLIC AND PRIVATE LIMITED COMPANIES An unlisted public company and private companies can issue shares under Private Placement offer pursuant to Section 42 & 62 (1) (c) of Companies Act, 2013 (Act) and Rule 13 of Companies (Share Capital and Debentures) Rules, 2014 and Rule 14 of [&h...

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Private Placement of Shares/Securities – Companies Act, 2013

Company Law - PRIVATE PLACEMENT OF SHARES/SECURITIES The concept of private placement of securities is governed under section 42 of the Companies Act, 2013 read with rule 14 of Companies (Prospectus and Allotment of Securities) Rules, 2014, wherein securities are offered to select group of persons through a private placement offer letter instead of goi...

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Govt may table bill in parliament to allow SBI to split its shares and issue bonus shares

Company Law - A bill enabling the State Bank of India (SBI) to split its shares and issue bonus shares may be placed in the current winter session of Parliament. Besides, the amendments to the State Bank of India Act, 1955, envisage the preferential or private placement of shares. The SBI (Amendment) Bill also proposes to allow India’s No. 1 bank to ...

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Interest on funds borrowed for acquiring controlling interest not allowable expenditure under the Income Tax Act

Panatone Finvest Ltd. (ITAT Mumbai) - The Taxpayer incurred interest expenditure on the funds borrowed for investing in shares of a company, with a view to acquire controlling interest. The ITAT held that the interest expenditure incurred is not allowable under Section 57(iii)(Section) of the Indian Tax Law (ITL), since it is not incurr...

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Comments invited on proposed rules for preferential allotment u/s 81 of Companies Act, 1956

F.No. 12/13/2011-Legal - (24/05/2011) - In exercise of the powers conferred by sub Section (1-A) of Section 81 of the Companies Act 1956 read with Section 642 of the said Act, the Central Government hereby makes the following rules in supersession of unlisted Public companies (Preferential Allotment) Rules, 2003. 1. Short Title and Commen...

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Recent Posts in "private placement"

Gist of Private Placement- Section 42 of Companies Act, 2013

Gist – As per Section 42 of Companies Act, 2013 Private Placement – Meaning • means any offer or invitation to subscribe or issue of securities • to selected group of persons by a company (Other than by way of Public Offer) through Private Placement offer-cum application letter (PAS 4) ; Other Imp points • […]...

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Posted Under: Company Law |

Procedure for issue of Shares on Private Placement basis

Process for issue of Shares through Private Placement under Companies Act, 2013 & SEBI (LODR) Regulations, 2015 SR. NO. PROVISIONS UNDER THE COMPANIES ACT, 2013 SR. NO. PROVISIONS UNDER SEBI (LODR) REGULATIONS, 2015 1. The Company shall obtain the Valuation Report for price determination and its justification; [Note: Relevant date for...

Read More
Posted Under: Company Law |

Meaning, Provisions & Procedure For Issue of Shares Via Private Placement

Private placement by companies means offering their securities or inviting to subscribe its securities to the selected group of persons other than by the way of a public issue through a private placement offer letter....

Read More
Posted Under: Company Law |

Private Placement by unlisted public and private companies

ISSUE OF SHARES UNDER PRIVATE PLACEMENT BY UNLISTED PUBLIC AND PRIVATE LIMITED COMPANIES An unlisted public company and private companies can issue shares under Private Placement offer pursuant to Section 42 & 62 (1) (c) of Companies Act, 2013 (Act) and Rule 13 of Companies (Share Capital and Debentures) Rules, 2014 and Rule 14 of [&h...

Read More
Posted Under: Company Law |

Private Placement of Shares/Securities – Companies Act, 2013

PRIVATE PLACEMENT OF SHARES/SECURITIES The concept of private placement of securities is governed under section 42 of the Companies Act, 2013 read with rule 14 of Companies (Prospectus and Allotment of Securities) Rules, 2014, wherein securities are offered to select group of persons through a private placement offer letter instead of goi...

Read More
Posted Under: Company Law |

Private Placement under Companies Act, 2013 (Section 42)

Funding is crucial for corporates, not only to invest and expand but also to operate their daily business. Companies have 3 alternatives to fulfill their funding requirements, that is by using 1. Debt 2. Issue Equity 3. Using money earned from Operations Equity and Debt are the most common way of funding. Equity would mean […]...

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Posted Under: Company Law |

Issue of Shares on Private Placement basis

In today’s scenario, all the Company’s after successfully availing company registration, irrespective of their size require the expansion of capital and growth of their business. So, to raise capital, the Companies Act, 2013[1], has come up with Section 42 of Companies Act, 2013, which provides to make an offer of shares to a selected...

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Posted Under: Company Law |

Private Placement under Companies Act, 2013 – Things to keep in Mind

While Undertaking Private Placement under Section 42 of the Companies Act, 2013, following points should be kept in mind:- 1. To ensure that persons to whom offer has been made does not exceed 200 in a financial year for each kind of security. 2. It is to be noted that any offer or invitation made […]...

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Posted Under: Company Law |

Extract of Board Minutes of Company for Private Placement

The Chairman informed that to obtain approval of shareholders for preferential allotment of shares to concerned allottees and any other matter with consent of shareholders, it was required to convene Extraordinary General Meeting of the Company. After some discussion the following resolution was passed:...

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Posted Under: Company Law |

Checklist for Issue of shares on private placement basis

A private placement is a sale of stock shares or bonds to pre-selected investors and institutions rather than on the open market. Private placemen is an alternative to an initial public offering (IPO) for a company seeking to raise capital for expansion. Article contains Checklist for Issue of shares on private placement basis: 1. Draftin...

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Posted Under: Company Law |

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