PRAKASH MATUPALLI asked 2 years ago
Sir
Can you please explain me the concept of listed public company and listed private company practically means if a company is listed that means it can accept money from public then why it is called as listed private company ???
Ravi Staff answered 2 years ago
Private company can raise money through private placement of debentures, offer should not be more than 200 people, this limit excludes “Qualified Institutional Buyers” QIBs and Employees covered under ESOP scheme.
After doing private placement they can list these debentures on recognised stock exchange after complying with stringent conditions.
Its good for investors in debentures as they get easy exit route whenever they need money, further risk of debentures is low and SEBI regulations ensures wrong doings are kept away.
So yes this how private company can get listed.