|
S.NO. |
POINT OF DIFFRENCE |
PRIVATE PLACEMENT |
PREFERENTIAL ALLOTMENT |
|
1. |
Governing Section |
Governed under the provisions of Section 42 of Companies Act,2013 |
Governed under the provisions of Section 62(1)(c) of Companies Act,2013 |
|
2. |
Associated Rule |
Rule 14 of Companies( Prospectus and Allotment of Securities ) Rules, 2014 |
Rule 13 of Companies (Issue of Share Capital and Debentures) Rules, 2014 |
|
3. |
Issue of |
Securities (as defined under Section 2(81) of Companies Act, 2013) which says “Securities means the Securities defined in clause (h) of Section 2(81) of Securities Contracts (Regulation) Act, 1956.
|
Issue of Shares or Securities means equity shares, fully or partially convertible debentures or any other securities, which would be convertible or exchanged into Equity Shares. |
|
4. |
Offer Document |
Prescribed Document i.e. Private Placement Offer Letter (PAS 4) |
No such format is prescribed |
|
5. |
Limit on Number of Allottees |
Offer or Invitation of Securities shall be made to Maximum of 50 Persons at a time And 200 Persons in aggregate during a Financial Year and this limit of 50/200 shall exclude QIBs( Qualified Institutional Buyers) and Employees who are being offered securities under Employee Stock Option Scheme under section 62(1)(b) of Companies Act,2013 |
The limit as applicable on Private Placement shall apply as it is as per Rule 13(1) of Companies( Prospectus and Allotment of Securities ) Rules, 2014 |
|
6. |
Consideration |
Payment through cheque, Demand Draft or other bank channels but not by Cash. |
Shares can be issued for Cash or for a Consideration other than Cash. |
|
7. |
Bank Account |
Separate Bank Account in a Scheduled Bank is required to keep the application money. |
Nothing Specifically Required. |
|
8. |
Valuation Report |
No Valuation Report is required. |
Valuation report is required. |
|
9. |
Authorization in Articles |
No authorization in AOA is required |
Authorization in AOA is required. |
|
10. |
Special Resolution |
Prior Special Resolution is Required |
Same |
|
11. |
Allotment |
Within 60 Days of receipt of Application money. |
Allotment shall be made within 12 months of passing the Special Resolution.
|
|
12. |
Documents Involved |
PAS-4 (Private Placement Offer Letter) PAS-3 (E Form required to be filed on MCA 21 portal PAS 5 (Record of Private Placement Offers to be maintained by the Company) |
E Form PAS-3 will be required to filed on MCA 21 portal as return of allotment |
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