Write notes on the following: (iv) Private placement of shares.

Explanation II(ii) to section 42(1) defines the term 'private placement' to mean offer of securities or invitation to subscribe securities to a selected group of persons by a company (other than by way of public offer) through issue of private placement offer letter and which satisfies the conditions specified in section 42 of the Companies Act, 2013. Under the private placement, the offer of securities or invitation to subscribe securities, shall be made to such under of persons not exceeding fifty or such higher number as may be prescribed, (excluding qualified institutional buyers and employees of the company being offered securities under a scheme of employee stock option), in a financial year and on such conditions as may be specified under Rule 14(2) of he Companies (prospectus and Allotment of Securities) Rules, 2014. Rule 14(2)(b) provides that such offer or invitation shall be made to not more than 200 persons in the aggregate in a financial year.