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Private placement
Corporate & Other Laws
Limit of 50 person is mentioned in section 42. But company rules prescribes 200 persons as the maximum number of person for private placement offer . What to be considered? If the second offer of security of another kind is made within the completion of first issue of another security,will it be deemed public offer ? Kindly clarify me
Answers (21)
Section 42 of the Act explains that ; Number of individuals in a private placement can't exceed A.) 50 OR B.) Number as prescribed. And Company rules, 2014 states that ; private placement can't exceed 200 individuals. As , in practical life - law is a theoretical provisions and Rules are implentations of law. Hence ; 200 limit shall be considered while private placement.
Private placement 1.Maximum - 50 at one time 2.In one F.Y. - 200 Aggregate
Prakash M
Private placement 1.Maximum - 50 at one time 2.In one F.Y. - 200 Aggregate
Ohok ..if greater than 50 at a time,what should be done
Thread Starter
Shankari COhok ..if greater than 50 at a time,what should be done
That itself it shouldn't reach over 50 at a time, if exceeds then contravention
Sugam SM
That itself it shouldn't reach over 50 at a time, if exceeds then contravention
But in question,51 persons are being issued .But it was termed private placement.How ?
Sugam SM
Is it ques 5 of module
sorry I rechecked it, limit should be 200 but they did not mention how much at a specific time. I responded as per above reply but there is no such limit. Such issue should not exceed 200 and it applies for all type of securities
Varun Mulay
Section 42 of the Act explains that ; Number of individuals in a private placement can't exceed A.) 50 OR B.) Number as prescribed. And Company rules, 2014 states that ; private placement can't exceed 200 individuals. As , in practical life - law is a theoretical provisions and Rules are implentations of law. Hence ; 200 limit shall be considered while private placement.
Then Can I write like this as answer ? @Sugam
Sugam SM
Yes go ahead
Yes , only present it more in legal essence and format. But ; you would not have enough time to quote examples .
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