equity private placement

This query is : Resolved 

30 June 2009 Hello,
This is raghu here,

I just wanted to know what is meant by raising finance by equity private placement.

One more thing, i have my final attempt in this november. I heard from some body that the exams will be conducted daily as against the present structure of conducting in alternate days. If this is the case there will be hardly any time to revise the subject before going to exam, please let me know if this is correct.

Awaiting prompt response

@raghu@

30 June 2009 Hi,

By making preferential issue of equity shares to some on you may arrange equity finance for the company.

Preferential issue of equity shares is governed by section 81(1A) of the companies act, 1956.

In preferential issue company issue equity shares to persons other then its existing shareholders by taking their approval through special resolution.

In listed companies the same process is governed by SEBI Guidelines for preferential issue.

Regards



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