Changes in provision of Private Placement as per Companies Act, 2013

Broad Changes in the provisions of Section 42 read with Rule 14 of Companies (Prospectus and Allotment of Securities) Rules, 2014, i.e. Private placement of securities are:
(a) The requirement related to value of offer or invitation per person of Rs. 20,000/- of face value of the securities has been done away with.
(b) Restriction on use of Share Application Money until the allotment is made and the return of allotment, in e-form PAS – 3, is filed with the Registrar of Companies.
(c) Common private placement offer cum application form, i.e. PAS-4 has been revised.
(d) E-form PAS-3 is required to be filed within 15 days of allotment instead of 30 days.
(e) Separate penal provisions for non-filing of e-form PAS – 3 has been introduced and the company, its promoters and directors shall be liable with a penalty Rs. 1,000/- per day but not exceeding Rs. 25 Lakh.