Issue of Securities by Public/ Private Companies

• A public company may issue securities—

1. To public through prospectus – Public offer by complying with the provisions of Part I of Chapter III – Prospectus and Allotment of Securities; or
2. Through private placement by complying with the provisions of Part II of Chapter III – Prospectus and Allotment of Securities; or
3. Through a rights issue or a bonus issue in accordance with the provisions of the Act and in case of a listed company or a company which intends to get its securities listed also with the provisions of the Securities and Exchange Board of India Act, 1992 and the rules and regulations made thereunder.

• A private company may issue securities—

1. By way of rights issue or bonus issue in accordance with the provisions of the Act; or
2. Through private placement by complying with the provisions of Part II of Chapter III – Prospectus and Allotment of Securities.