What are the methods to issue securities by Companies Section 23 of Indian Companies Act 2013 - Public offer and Private Placement

 

Section 23 Public offer and Private Placement - Indian Companies Act 2013

 

As per Section 23 of Indian Companies Act 2013 method to issue securities can be either public offer or private placement. Provision in the Indian Companies Act 2013 regarding Public offer and private placement etc is as under.


 

(1) A public company may issue securities


(a) to public through prospectus (herein referred to as "public offer") by complying with the provisions of this Part; or


(b) through private placement by complying with the provisions of Part II of this Chapter; or


(c) through a rights issue or a bonus issue in accordance with the provisions of this Act and in case of a listed company or a company which intends to get its securities listed also with the provisions of the Securities and Exchange Board of India Act, 1992 and the rules and regulations made thereunder.


(2) A private company may issue securities
(a) by way of rights issue or bonus issue in accordance with the provisions of this Act; or


(b) through private placement by complying with the provisions of Part II of this Chapter.


Explanation.For the purposes of this Chapter, "public offer" includes initial public offer or further public offer of securities to the public by a company, or an offer for sale of securities to the public by an existing shareholder, through issue of a prospectus.

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