Companies Act 2013: Chapter III Overview

A company whose shares are traded on a public stock exchange, making them accessible to the general public.

A company whose shares are not traded on public exchanges, and ownership is typically restricted to a small group of individuals or investors.

The process by which a company raises capital from the general public by offering shares of its stock for sale for the first time.

The process by which a company already listed on a stock exchange offers additional shares to the public to raise capital.

A method of raising capital where a company sells securities to a limited number of investors, often institutional investors, rather than publicly offering them.

An offer of securities to the public, including both initial public offerings (IPOs) and further public offerings (FPOs), where a company raises capital by selling shares to general investors.

A document that provides detailed information about a company, its operations, and its financials, and is required to be issued when a company makes a public offering of securities.

When a company raises funds by directly selling securities to a small group of investors, typically institutions, without involving the public.

The process of raising funds from investors by issuing securities, either through public offerings or private placements.

Raising funds by selling securities to the general public, giving investors access to ownership in the company.

A legal document that outlines the core purpose, powers, governing principles, and structure of a company, including its name, registered office, and authorized share capital.

A legal document that specifies the internal regulations, rules, and operational procedures of a company, detailing how the company will operate and manage its affairs.

The process of allocating shares or securities to investors in a company, which can occur through public offerings or private placements.

A legal document that provides potential investors with information about a company's business and financial performance in a simplified and concise manner, aimed at attracting investors.

A form of fundraising where a company issues securities to a select group of investors, typically sophisticated individuals or institutions, outside of public markets.

An investment in a company made before it goes public, typically involving capital appreciation potential in exchange for supporting early-stage growth, but carrying a higher level of risk.

A type of fundraising where a company raises capital by issuing new shares to existing shareholders, who have the right to buy a certain number of shares at a specified price before they are offered to the public.

Detailed rules and regulations governing private placements in India are found in Section 42 of the Securities and Exchange Board of India (SEBI) Act, 1992.

The Securities and Exchange Board of India (SEBI) is the regulatory body responsible for overseeing the Indian securities market

The Securities and Exchange Board of India (SEBI) Act, 1992, outlines the powers of SEBI to regulate the issuance and transfer of securities in India including private placements.

Section 23 outlined in the SEBI Act, 1992, deals with the rules and regulations related to private placements.

SEBI's powers extend to controlling matters related to the prospectus (a document that describes a company's financial details, including its financial history and planned use of funds), return of allotment (information regarding shares issued to investors), redemption of preference shares (the process of repaying investors who purchased preference shares), and other matters mentioned specifically in the SEBI Act.

A return of allotment is a document that contains details about the allocation and allotment of securities (like shares) to investors who applied for them in a securities offering.

Preference shares are a type of stock that gives the holder a preferential right to receive dividends compared to ordinary shares.

Redemption of preference shares refers to the process of repaying investors who hold preference shares when a company is ready to buy back these shares from them.