Explain the manner in which public limited companies may issue their securities as per the previsions of the Companies Act, 2013.
CS Executive · Company Law · PYQS · December 2022
Explain the manner in which public limited companies may issue their securities as per the previsions of the Companies Act, 2013.
Answer & Explanation:
As per Section 23(1) of the Companies Act, 2013, a public company may issue securities in the following manner: to public through prospectus ('public offer') by complying with the provisions of Part I of Chapter III of the Companies Act, 2013; or through private placement by complying with the provisions of Part II of Chapter III of the Companies Act, 2013; or through rights issue or a bonus issue in accordance with the provisions of the Companies Act, 2013 and in case of a listed company or a company which intends to get its securities listed also with the provisions of the SEBI Act, 1992 and the rules and regulations made there under.
Topics: Prospectus and Allotment of Securities
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