Private Placement Limit - Query

[sachin sathyavrathan]

Dear sir,

The section 42 and relevant rules of the private placement states that an offer or invitation to subscribe securities under private placement shall not be made to persons more than two hundred in the aggregate in a financial year. The limit of 200 is applicable class-wise or for aggregate of all classes during the financial year??

In our case, the company is an NBFC already issued debentures on private placement basis and now planning to issue CCPS (Compulsory convertible Preference Shares) on private placement basis. Whether both the persons (CCPS and Debentures) will be considered for the limit of 200?

Thanks in advance.

CS Sachin Sathyavrathan, 

Practising Company Secretary

Membership No: A42942

Mob: 9567294412

[Nonit Yadav | Mehta-Mehta |]

Hello Sir

Greetings of the day 

The limit of 200 is for each class of securities and is not limited  to the aggregate of one security attaching GEETA SAAR by ICSI for better clarity (Please Refer 3rd point of attached file)

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Thanks and Regards,

Nonit Kumar

Professional Consultant 

|Mehta & Mehta Company Secretaries |

Plot No-187, Pocket-17, Sector 24, Rohini, 

Delhi 110085

Mob.: +91 8956280026| 9953486498

Head Office: Worli Mumbai

B: +91 (22) 6611 9696 |

Website: http://www.mehta-mehtaadvisory.com|

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