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  As per proviso to section 152(3) of the Companies Act, 2013 no company shall appoint or re-appoint any individual as director of the company unless he has been allotted a Director Identification Number (DIN) under section 154 or such other identification number as the Central Government may prescribe. Section 152(3) provides that every individual, intending to be appointed as director of a company shall make an application for allotment of DIN to the Central Government (Powers delegated to the Regional Director, Noida) in the prescribed e-Form DIR-3 Therefore, before submission of e-Form RUN for reservation of name, all the directors of the proposed company must ensure that they are having valid PAN based DIN and if they are not having DIN, or if it is not PAN based, they should obtain DIN or make modification in the existing DIN if any, before taking further action. However, instead of applying and obtaining separate DIN, it may also be applied simultaneously with the Form SPICe-32.

  INTRODUCTION Private placement can be explained as a means of raising capital by the companies without going for public issues. Public Issues like Initial Public Offering and Further Public Opening are means of raising capital by the companies. DEFINITION A private placement is a sale of stock shares or bonds to pre-selected investors and institutions rather than on the open market. It is an alternative to an initial public offering (IPO) for a company seeking to raise capital for expansion. Condition for Private Placement under the Companies Act, 2013 Maximum Number of Persons:  An offer for private placement can be made to not more than 200 people in a financial year. Minimum amount of offer for an individual:  The value of the Offer per person shall not be less than INR 20,000 of ‘face value’ of securities. Persons to whom an offer can be made:  All offers shall be made only to those persons whose names are recorded by the company prior to the invitation to subscribe and allotment

  Introduction- What is sweat equity shares? Sweat equity shares refers to equity shares given to the company’s employees on favorable terms, in recognition of their work. Sweat equity shares is one of the modes of making share based payments to employees of the company. The issue of sweat equity shares allows the company to retain the employees by rewarding them for their services. Sweat equity shares rewards the beneficiaries by giving them incentives in lieu of their contribution towards the development of the company. Further, Sweat equity shares enables greater employee stake and interest in the growth of an organization as it encourages the employees to contribute more towards the company in which they feel they have a stake. DEFINITION As per section 2(88) of the Companies Act, 2013 Sweat Equity Shares means such equity shares as are issued by a company to its directors or  employees  at a discount or for consideration, other than cash, for providing their know-how or making ava