Action Against Unlisted Companies Misusing The Private Placement Route to Raise Funds

Action against errant unlisted companies that misuse the private placement route to raise funds under the provisions of Companies Act, 1956 is a continuous process. Giving this information in written reply to a question in the Lok Sabha, Minister of Corporate Affairs, Shri Sachin Pilot, said that Section 42 of the Companies Act, 2013 provides for invitation for subscription of securities on Private Placement. Draft Rules regarding Private Placements have already been issued by the Ministry on 24.9.2013 inviting public comments under the Companies Act, 2013.