The Corporate Affairs Ministry has fined two companies and nine individuals nearly Rs 10 crore for violating private placement norms under Section 42 of the Companies Act, 2013. Planify Capital and Mayasheel Retail India Pvt Ltd were found to have used a crowdsourcing platform to issue securities through private placement, exceeding the permitted limit of 200 persons. The fines were imposed as the companies breached regulations by advertising the issuance and selling securities in the open market. The ministry continues to crack down on entities engaging in illegal fundraising activities.
Corporate Affairs Ministry Imposes Fines on Companies for Violating Private Placement Norms
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