What is private placement, and what are its limits?
Question
What is private placement, and what are its limits?
Expert Answer
Answered 18 Apr 2026
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Private placement is a method by which a company raises fund by issuing securities like equity shares, preference shares to a selected group of investors instead of offering them to the public.
An offer to subscribe securities under private placement shall not be made to persons more than two hundred in the aggregate in a financial year