section 23 of Companies Act 2013 - PUBLIC OFFER AND PRIVATE PLACEMENT
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SECTION 23 OF THE COMPANIES ACT 2013 - PUBLIC OFFER AND PRIVATE PLACEMENT
The provisions related to the prospectus and issue of securities is contained in Chapter III of the Companies Act, 2013. This chapter contains two parts. Part I is in respect of Public Offer, Part-II is in respect of Private Placement.
This section 23 of the companies act 2013 provides that a public company can issue securities to :-
- Public through prospectus. This issue of securities to the public is known as public offer. The provisions relating to the public offer are provided in Part-I of this Chapter-III
- Through private placement in respect of which provisions are provided in Part-II of the Chapter-III of the Companies Act 2013
- Through right or bonus issue by complying with the provisions of this act or the provision of SEBI by the companies’ shares of which are listed in the stock exchange or going to be listed in the stock exchange.
Now private companies can issue securities:-
- Through private placement in respect of which provisions are provided in Part-II of the Chapter-III of the Companies Act 2013
- Through right issue or bonus issue by complying with the provisions of this act.
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