Seeking a clarification for following issue please. Section 194 of Companies Act prohibits on forward dealings in securities of the company by director or Key managerial personnel. Whether this section restricts to have Put & Call option at the time of issuing shares under the private placement route by unlisted public company. Proviso to Section 58(2) of the Companies Act provides that any contract or arrangement between two or more persons in respect of transfer of securities shall be enforceable as contract. Further, SEBI has issued some notification in relation to the same.

Section 194- Prohibition on forward dealings in securities of company by director or key managerial personnel..

Posted By: Sanam singh 8 year(s) ago