Private placement of shares out of Promoters’ Quota ‑ Prohibition on private placement of shares or collecting unofficial premia

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..... on private placement of shares or collecting unofficial premia It has come to the notice of Government that some companies utilise the services of brokers and other intermediaries for private placement of equity shares out of promoters quota or otherwise, insert advertisements in the print media and also mass‑mail literature/material/brochures superscribed by the caption Confidential/Fo .....

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..... ovisions relating to prospectus under the Act, are applicable. The companies concerned, their promoters and their intermediaries are hereby warned that making of so-called private placement of shares or collecting unofficial premia without recording the same in the books of account of the company, are serious contraventions of the Act and will invite penal action under the Act by the Government. I .....

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