law: Companies Act, 1956
  Sec 67    -    
  
  Construction of references to offering shares or debentures to the public, etc.
  (1) Any reference in this Act or in the
  
  articles of a company to offering shares or debentures to the public shall,
  
  subject to any provision to the contrary contained in this Act and subject also
  
  to the provisions of sub-sections (3) and (4), be construed as including a
  
  reference to offering them to any section of the public, whether selected as
  
  members or debenture holders of the company concerned or as clients of the
  
  person issuing the prospectus or in any other manner.
  (2) Any reference in this Act or in the
  
  articles of a company to invitations to the public to subscribe for shares or
  
  debentures shall, subject as aforesaid, be construed as including a reference
  
  to invitations to subscribe for them extended to any section of the public,
  
  whether selected as members or debenture holders of the company concerned or as
  
  clients of the person issuing the prospectus or in any other manner.
  (3) No offer or invitation shall be treated as
  
  made to the public by virtue of sub-section (1) or sub-section (2), as the case
  
  may be, if the offer or invitation can properly be regarded, in all circumstances
  
  
  (a) as not being calculated to result,
  
  directly or indirectly, in the shares or debentures becoming available for
  
  subscription or purchase by persons other than those receiving the offer or
  
  invitation ; or
  (b) otherwise as being a domestic concern of the
  
  persons making and receiving the offer or invitation.
  Provided  that nothing contained in this
  
  sub-section shall apply in a case where the offer or invitation to subscribe
  
  for shares or debentures is made to fifty persons or more :
  Provided  further that nothing contained in the
  
  first proviso shall apply to the non-banking financial companies or public
  
  financial institutions specified in section 4A of the Companies Act,
  
  1956. 
  (3A) Notwithstanding anything contained in
  
  sub-section (3), the Securities and Exchange Board of India shall, in
  
  consultation with the Reserve Bank of India, by notification in the Official
  
  Gazette, specify the guidelines in respect of offer or invitation made to the
  
  public by a public financial institution specified under section 4A or
  
  non-banking financial company's referred to in clause (f) of section 45-I of
  
  the Reserve Bank of India Act, 1934 (2 of 1934).
  (4) Without prejudice to the generality of
  
  sub-section (3), a provision in a company's articles prohibiting invitations to
  
  the public to subscribe for shares or debentures, shall not be taken as
  
  prohibiting the making to members or debenture holders of an invitation which
  
  can properly be regarded in the manner set forth in that sub-section.
  (5) The provisions of this Act relating to
  
  private companies shall be construed in accordance with the provisions
  
  contained in sub-sections (1) to (4).