INTRODUCTION
The term "Private Placement" of securities has been
defined distinctively for the very first time in Indian legal and
corporate history by the new Companies Act of 2013. The earlier
Indian Companies Act of 1956 dealt scarcely with the practices of
this under its Sections 67(3) and 73(1), and was concerned mainly
with shares and debentures, and the public limited companies.
However, SEBI (Issue of Capital and Disclosure Requirements)
Regulations of 2009 did stipulate the term Preferential Allotment,
which is the private placement of shares or of convertible
securities by a listed company to a select group of investors, who
are not its existing shareholders. The new Companies Act of 2013
not only defined and described fully the private placements of
securities, but also laid down certain intelligent provisions for
the private placements by both the private and public companies.
Moreover, the new provisions for private placements have widened
the scope
