A listed company raises capital by issuing shares to a small group of select persons. For a PRIVATE PLACEMENT under Section 42 of the Companies Act, 2013, the offer of securities must be made to not more than ___ persons in a financial year (excluding qualified institutional buyers and employees under the prescribed scheme):

Section 42 of the Companies Act, 2013 regulates PRIVATE PLACEMENT: an offer or invitation to subscribe to securities cannot be made to more than TWO HUNDRED persons in a financial year (excluding qualified institutional buyers and employees to whom securities are offered under a scheme approved by the members), with prescribed valuation and return filings. Private placement is a convenient but strictly-regulated route to raise capital without a public issue. Contravention attracts penalties and the securities may be treated as an offer to the public. The 200-person ceiling is the operative numeric limit.