, MCA replaced the section 42 and rules for Private Placement ~ CS GAURAV SHARMA

August 8, 2018

MCA replaced the section 42 and rules for Private Placement

Major changes in provisions and rules are as follows: 1. Identified Persons: The persons to whom the private placement is to be made shall be first identified by Board. 2. Utilization of Money: As per new provision, money raised through Private placement can not be utilized unless allotment is made and return of allotment is filed with ROC. 3. Return of Allotment: Return of Allotment (Form PAS-3) shall be filed within 15 days from the date of allotment (earlier, it was 30 days). 4. Non-convertible debentures: Private placement for non-convertible debentures can be made by board resolution, if such offer amount is not exceeding the limit specified in Section 180(1)(c) of Companies Act, 2013. 5. Issue of Private placement offer letter: The Private Placement offer-cum-application letter shall be filed only after the relevant special resolution or board resolution shall be filed with ROC in Form MGT-14. 6. Replacement of document: Form PAS-4 is replaced in the new rules.

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