Recent Amendments to Private Placement of Securities & Managerial Remuneration

Private placement of securities is anti-thesis to public issue of securities. Private placement helps a company to elicit interest from prospective investors in investing in the shares of the company. Private Placement is process driven. Vide Notification dated 07th August, 2018, the Ministry of Corporate Affairs (MCA) has notified a new Section 42 (forming part of Companies (Amendment) Act, 2017 in substitution of the existing one in the Companies Act, 2013 (the Act) and also replaced Rule 14 of the Companies (Prospectus and Allotment of Securities) Rules, 2014 (the Rules).

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