Governing provisions

Preferential issue of securities is governed by :

section 62(1)(c) of the Companies Act, 2013 (“Act’) and Rule 13 of Companies (Share Capital and Debenture) Rules, 2014 (“SHA Rules”) and section 42 of the Act and Rule 14 of Companies (Prospectus and Allotment of Securities) Rules, 2014 (“PAS Rules”).

Chapter V of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (“ICDR”) and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 also becomes applicable.

In these FAQs, we intend to cover Preferential issue of equity shares and unlisted Warrants under SEBI ICDR.