Capital Raise Made Easy…?

The Companies Act, 2013, ('New Act') attempts to consolidate all the methods available to a company to raise capital. Chapter III and Chapter IV of the New Act sets out all the methods by which any company, whether private or public, could raise capital.

Chapter III is divided into 2 distinct parts. Part I deals with capital raise by a public company, whether listed or unlisted, and also expands the rights available to the Securities and Exchange Board of India ('SEBI'). Part II codifies the methodology of Private Placement dealt by Section 67 of the Companies Act, 1956 ('Old Act'). Section 67 came to be part of the public discourse owing to the pronouncements in the now infamous Sahara Judgement.¹