Closing the Section 42(7) Gap: A Case for Extending Platform Liability under the Companies Act 2013

Introduction : Section 42 of the Companies Act 2013 defines private placement and provides provisions for issue of shares on private placement basis. Section 42(7) of the Act prohibits the company issuing securities from using public advertisements, media, marketing or distribution channels or agents to inform the public at large about the private placement issue. Section 42(10) imposes a penalty on the company, its directors and promoters for contravention of the Section 42. However, it...