Difference In Between Public Issue And Private Placement

Difference In Between Public Issue And Private PlacementWhen an issue isn’t made to just a select group of people however is available to the general public as well as any other investor at large, it’s a public issue. However, if the issue is enabled to a select group of people, it’s known as private placement. According to Companies Act, 1956, an share issue becomes public when it results in allotment of 50 persons or even more. share issue becomes privately when an allotment is made to lower than 50 persons.

Since a non-public placement is provided to some select people, this placement doesn’t have to be listed with the SEBI. Most of the time comprehensive financial details are not revealed and a the requirement for a prospectus is waived.

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Difference, public issue, private placement, Type of share (stock) and companies act 1956,

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