23. Public offer and private placement.
(1) A public company may issue securities—
(a) to public through prospectus (herein referred to as “public offer”) by
complying with the provisions of this Part; or
(b) through private placement by complying with the provisions of Part II of this
Chapter; or
(c) through a rights issue or a bonus issue in accordance with the provisions of
this Act and in case of a listed company or a company which intends to get its
securities listed also with the provisions of the Securities and Exchange Board of India
Act, 1992 and the rules and regulations made thereunder.
(2) A private company may issue securities—
(a) by way of rights issue or bonus issue in accordance with the provisions of
this Act; or
(b) through private placement by complying with the provisions of Part II of this Chapter.
Explanation.—For the purposes of this Chapter, “public offer” includes initial public
offer or further public offer of securities to the public by a company, or an offer for sale of
securities to the public by an existing shareholder, through issue of a prospectus.