Utilization of funds through private placement

Generally funds can be utilized after allotmnent of shares. When PAS 3 is filled with ROC and master data is updated.

Under Companies Amendment Act 2017, it is specfically highlited that Company can utilize the application money after the Complete allotment of shares, i.e. when PAS 3 is filled with ROC because as private Companie usually utilize the money immediately after receiving application money so to avoid the practice, govt has amended in the section and the application money so received shall be kept in seprate bank account .