Private Placement norms for issuance to QIBs made easier – “Umbrella” special resolution to be sufficient for a year

Private Placement of securities is one of the most frequently used means for raising funds by companies. Section 42 of the Companies Act, 2013 (“Act, 2013”) read with Companies (Prospectus and Allotment of Securities) Rules, 2014 (“PAS Rules”) deals with the procedural norms for private placement. Further, depending upon the nature of security i.e. shares or debentures, the provisions of Section 62(1) (c) or Section 71 of the Act, 2013, as the case may be, is applicable.

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