Difference between right issue and private placement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2016 I have query regarding difference between right issue and offer through private placement as per Companies Act, 2013. Whether private placement can be done to existing shareholders/shareholder of the Company. As per the Companies (prospectus and allotment of securities) rules 2014, justification or basis for the price at which offer or invitation through private placement was made shall be disclosed to the shareholders in the general meeting. How to do this. whether any valuation report should be taken from any professional. Is any Minimum subscription requirement is involved in both the options i.e. right issue and private placement.

c.bakshi

c.bakshi (Expert)
Follow

29 April 2016 if you are issuing shares to existing shareholders, then it is through RIGHT issue mode and if they are not exisiting shareholder of the company then such issue can only be done through private placement. it is a mode where director of the company or some officer of the company proposes to give share to third person without any invitation to the public

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

NISHANT SIPANI

RAGHUNATH KASIBHOTLA

siddhesh satardekar

Vimlesh kumar

Prakash Kaduluri

Subscribe Now

Difference between right issue and private placement

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANCY

Senior Executive

CA Final

GST CONSULTANT

Accountant

Manager- Finance and Compliance