Private placement rules limit identified subscribers, require offer cum application, 60 day allotment, separate bank account and penalties. Section 42 permits private placement only to board identified persons within the prescribed numeric limit, by prescribed private placement offer cum application with no renunciation. Application monies must be paid via banking channels and held in a separate scheduled bank account for allotment adjustment or repayment. Securities must be allotted within sixty days or monies repaid with interest; a return of allotment with full allottees' details must be filed within fifteen days. Breach attracts penalties and noncompliant issues may be deemed public offers subject to securities law.