As per Section 42 of the Companies Act, 2013, Private Placement of Shares means issue and allotment of Shares to a selected group of persons. In other words, in case of ‘Private Placement of Shares’, shares are not offered to the public in general through public issue but offered to a selected group of persons such as promoters, their (Friends. shareholders of group companies. Mutual Funds. Non-Resident Indians (NRIs), financial Institutions etc.