relief to QIBs in private placement

The Ministry of Corporate Affairs, India has vide its notification dated 16th October, 2020 amended the Companies (Prospectus and Allotment of Securities) Rules, 2014 by allowing the special resolution for allotment of shares to Qualified Institutional Buyers once a year, instead of every time it is issued to the QIBs.

A proviso has been to the Rule 14(1) which says as follows

Hitherto, the special resolution was required to be passed for each offer or invitation to the QIBs.

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