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Section 23

Public offer and private placement

Regulation 32 of LODR

(1)
A public company may issue securities —
(a)
to public through prospectus (herein referred to as “public offer”) by complying with the provisions of this Part; or
(b)
through private placement by complying with the provisions of Part II of this Chapter; or (Effective from 01-04-2014)
(c)
through a rights issue or a bonus issue in accordance with the provisions of this Act and in case of a listed company or a company which intends to get its securities listed also with the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992) and the rules and regulations made thereunder.
(2)
A private company may issue securities—
(a)
by way of rights issue or bonus issue in accordance with the provisions of this Act; or
(b)
through private placement by complying with the provisions of Part II of this Chapter.(Effective from 01-04-2014)
(3)
Such class of public companies may issue such class of securities for the purposes of listing on permitted stock exchanges in permissible foreign jurisdictions or such other jurisdictions, as may be prescribed.
(4)
The Central Government may, by notification, exempt any class or classes of public companies referred to in sub-section (3) from any of the provisions of this Chapter, Chapter IV, section 89, section 90 or section 127 and a copy of every such notification shall, as soon as may be after it is issued, be laid before both Houses of Parliament
Explanation

For the purposes of this Chapter, “public offer” includes initial public offer or further public offer of securities to the public by a company, or an offer for sale of securities to the public by an existing shareholder, through issue of a prospectus .

Notes, amendments & references (2)

Refer MCA Notification dated 30.10.2023 for the effective date. To view the notification, Click here .

Inserted vide Companies (Amendment) Act, 2020 dated 28.09.2020, yet to be notified. To view the notification, Click Here