Section 42 provides for all securities whereas section 62 is deals with only Shares
As per Section 2 ( 81) "securities" means the securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
(h) “securities” include— (i) shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate;
[(ia) derivative
(ib) units or any other instrument issued by any collective investment scheme to the investors in such schemes;]
[(ic)security receipt as defined in clause (zg) of section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002;]
[(id) units or any other such instrument issued to the investors under any mutual fund scheme;]
(ii) Government securities; (iia) such other instruments as may be declared by the Central Government to be securities; and (iii) rights or interest in securities;
Private placement means any offer of securities or invitation to subscribe securities to a select group of persons
As per Section 2 ( 81) "securities" means the securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
(h) “securities” include— (i) shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate;
[(ia) derivative
(ib) units or any other instrument issued by any collective investment scheme to the investors in such schemes;]
[(ic)security receipt as defined in clause (zg) of section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002;]
[(id) units or any other such instrument issued to the investors under any mutual fund scheme;]
(ii) Government securities; (iia) such other instruments as may be declared by the Central Government to be securities; and (iii) rights or interest in securities;
Private placement means any offer of securities or invitation to subscribe securities to a select group of persons
Wherease Section 62 shares can be offered to existing or new persons or employees or conversion of debt into shares
Section 42 separate bank account to be opened whereas no such condition exist in Section 62
While conversion of debt into shares we need to take care Section 192 The necessary disclosure has to be given
The penalty clause has provided in Section 42 but no such clause we need to refer section 450 where it provides that Punishment where no specific penalty or punishment is provided
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