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TMI BlogSubstitution of section 42.X X X X Extracts X X X X X X X X Extracts X X X X ..... s under a scheme of employees stock option in terms of provisions of clause ( b ) of sub-section ( 1 ) of section 62], in a financial year subject to such conditions as may be prescribed. ( 3 ) A company making private placement shall issue private placement offer and application in such form and manner as may be prescribed to identified persons, whose names and addresses are recorded by the company in such manner as may be prescribed: Provided that the private placement offer and application shall not carry any right of renunciation. Explanation I.- private placement means any offer or invitation to subscribe or issue of securities to a select group of persons by a company (other than by way of public offer) through private placement offer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvitation made earlier have been completed or that offer or invitation has been withdrawn or abandoned by the company: Provided that, subject to the maximum number of identified persons under sub-section ( 2 ), a company may, at any time, make more than one issue of securities to such class of identified persons as may be prescribed. ( 6 ) A company making an offer or invitation under this section shall allot its securities within sixty days from the date of receipt of the application money for such securities and if the company is not able to allot the securities within that period, it shall repay the application money to the subscribers within fifteen days from the expiry of sixty days and if the company fails to repay the application mon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section, the company, its promoters and directors shall be liable for a penalty which may extend to the amount raised through the private placement or two crore rupees, whichever is lower, and the company shall also refund all monies with interest as specified in sub-section ( 6 ) to subscribers within a period of thirty days of the order imposing the penalty. ( 11 ) Notwithstanding anything contained in sub-section ( 9 ) and sub-section ( 10 ), any private placement issue not made in compliance of the provisions of the sub-section ( 2 ) shall be deemed to be a public offer and all the provisions of this Act and the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and the Securities and Exchange Board of India Act, 1992 (15 of 1992) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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