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What is meant by 'Private Placement of S...

What is meant by 'Private Placement of Shares' ?

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As per Section 42 of the Companies Act, 2013, Private Placement of Shares means issue and allotment of Shares to a selected group of persons. In other words, in case of 'Private Placement of Shares', shares are not offered to the public in general through public issue but offered to a selected group of persons such as promoters, their friends, shareholders of group companiens, Mutual Funds, Non-Resident Indians (NRIs), Financial Institutions etc.
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