Companies Act, 2013Private PlacementSecurities LawStartupsIssue of Securities on Private Placement Basis - Per the latest Amendment to Section 42 of the Companies Act, 2013
A company shall require more capital for the growth apart from the founders or promoters’ contribution. In order to raise sufficient capital, the company may make a private offer to a select group of persons to subscribe to the securities of the company. The board of directors of the company shall identify such persons (‘identified...