As per Section 42(2) the prescribed linit for private placement is not exceeding 50 or such higher number as may be prescribed.
But Rule 14(2)(b) of companies (prospectus and allotment of securities) rules states that such offer shall be made to not more than 200 in a financial year in aggregate.
So which limit is applicable ?
Please explain the provision and clear the doubt
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Section 42
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Earlier the limit was restricted up to 49 investors which have now been relaxed to 200 investors in a financial year.
is there any notification for it
No new notification regarding it has been there
| Originally posted by : dwivedi gaurav | ||
 |
Earlier the limit was restricted up to 49 investors which have now been relaxed to 200 investors in a financial year. |  |
What is the base for this. Any circular?
In my opinion in a single allotment shares can be issued to maximum 50 persons and in a finacial year the total allotment upto 200 persons.
No, both figures relate to a financial year only
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