The Ministry of Corporate Affairs vide its notification dated 16th October 2020 has published the Companies (Prospectus and Allotment of Securities) Amendment Rules, 2020 to further amend the Companies (Prospectus and Allotment of Securities) Rules, 2014.
The Amendment is brought under rule 14 which deals with private placement in which a company may make an offer or invitation to subscribe to securities through issue of a private placement offer letter in Form PAS-4.
A private placement offer letter shall be accompanied by an application form serially numbered and addressed specifically to the person to whom the offer is made and shall be sent to him, either in writing or in electronic mode, within thirty days of recording the names of such persons in accordance with sub-section (7) of section 42.
Through this amendment the following proviso has been inserted under rule 14:
“Provided also that in case of offer or invitation of any securities to qualified institutional buyers, it shall be sufficient if the company passes a previous special resolution only once in a year for all the allotments to such buyers during the year”
