Sebi to align private placement norms with Companies Bill

The government has asked Securities and Exchange Board of India (Sebi) to set up a committee to look into compatibility of market watchdog's regulations for private placement of securities with the proposed measures in this regard in the new Companies Bill.The suggestion has been made by the Corporate Affairs Ministry amid rising instance of private placement being misused by various entities for raising of funds from public.Private placement of securities -- a relatively faster way to raise funds -- is governed by both the Companies Act and the Sebi regulations.While the existing Companies Act has been in place for decades, the new Companies Bill, currently awaiting Rajya Sabha nod, provides exhaustive changes in the way that future private placements can be carried out and regulated.

Source : Profit NDTV