Press Information Bureau

Government of India

Ministry of Corporate Affairs

15-March-2016 18:00 IST

Companies Law Committee (CLC) constituted by Government to look into issues arising out of implementation of Companies Act, 2013 has in its report made recommendations to ease private placement procedures laid down under Section 42 of the Companies Act, 2013. Simplified procedures are recommended for all private placements irrespective of the type of company. The CLC had extensive consultations with stakeholders before giving its recommendations. The recommendations of the CLC have been accepted by the Government.

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

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DSM/KA

Private placement procedures simplified after committee recommendations accepted, streamlining issuance compliance across companies. A committee recommended simplified procedures for all private placements under the Companies Act to ease issuance requirements regardless of company type; these recommendations, developed after extensive stakeholder consultations, have been accepted by the Government and were announced by the corporate affairs minister.