Preferential issue of shares is governed under section 62 of the Companies Act, 2013 and the Companies (Share, Capital and Debentures) Rules 2014. For listed companies such matters are regulated by Securities and Exchange Board of India (SEBI). These provisions do not require approval of Company Law Board (CLB) and as per the information furnished by the Company Law Board, also no such cases are pending with the CLB.

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today.

Preferential issue of shares: governed by company law and securities rules; no Company Law Board approval required, no pending cases. Preferential issue of shares is governed by the Companies Act framework and the Companies (Share, Capital and Debentures) Rules; listed issuers are regulated by the securities regulator. The statutory provisions do not require Company Law Board approval and the Company Law Board reports no pending cases concerning preferential allotments.