Section 23 The Companies Act, 2013

Section 23 The Companies Act, 2013

Public Offer and Private Placement

(1) A public company may issue securities

(a) to public through prospectus (herein referred to as “public offer”) by complying with the provisions of this Part; or

*(b) through private placement by complying with the provisions of Part II of this Chapter; or

(c) through a rights issue or a bonus issue in accordance with the provisions of this 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 (15 of 1992) and the rules and regulations made thereunder.

(2) A private company may issue securities

(a) by way of rights issue or bonus issue in accordance with the provisions of this Act; or

*(b) through private placement by complying with the provisions of Part II of this Chapter.

1[(3) Such class of public companies may issue such class of securities for the purposes of listing on permitted stock exchanges in permissible foreign jurisdictions or such other jurisdictions, as may be prescribed.

(4) The Central Government may, by notification, exempt any class or classes of public companies referred to in sub-section (3) from any of the provisions of this Chapter, Chapter IV, section 89section 90 or section 127 and a copy of every such notification shall, as soon as may be after it is issued, be laid before both Houses of Parliament.]

Explanation.—For the purposes of this Chapter, “public offer” includes initial public offer or further public offer of securities to the public by a company, or an offer for sale of securities to the public by an existing shareholder, through issue of a prospectus.

Note:

*Clause (b) of sub-section (1) and (2) of section 23 has been notified as on 01/04/2014

Amendment

1. Inserted by the Companies (Amendment) Act, 2020. Notification dated 28th September, 2020