Legal

Risk Disclosure

This document outlines the risks associated with raising capital and issuing equity through the Aurumaxis platform. Please read this carefully before listing your company.

Last updated: April 2026

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Important Notice

Raising capital through private placement involves legal, financial, and regulatory obligations. As an issuer on Aurumaxis, you are responsible for the accuracy of all information provided to investors. Aurumaxis is a technology platform — we facilitate transactions but are not a financial advisor, legal advisor, or regulator. You are strongly advised to consult a qualified company secretary or legal counsel before proceeding.

gavelRegulatory and Legal Risk

  • 1Private placement of equity shares in India is governed by Section 42 of the Companies Act, 2013. As an issuer, you are responsible for ensuring your raise complies with all applicable laws, including the Companies (Prospectus and Allotment of Securities) Rules, 2014.
  • 2Aurumaxis will assist with PAS-3 (Return of Allotment) filing and SH-1 certificate issuance, but the legal responsibility for compliance rests with your company and its directors.
  • 3You must not make any false, misleading, or exaggerated claims in your company profile, disclosure documents, or communications with investors. Doing so may expose your company and directors to civil and criminal liability under applicable law.
  • 4Private placement cannot be made to more than 200 persons in a financial year (excluding QIBs and employees under ESOP) as per Section 42. Aurumaxis monitors this limit on your behalf, but it is your responsibility to be aware of this restriction.

trending_downFundraise Risk

  • 1There is no guarantee that your fundraising round will reach its target amount. Aurumaxis does not underwrite or guarantee any raise.
  • 2If your raise does not close successfully, any committed funds are returned to investors and your listing fee is non-refundable.
  • 3Market conditions, investor sentiment, and the quality of your disclosure documents all affect the success of your raise. Aurumaxis does not provide fundraising advice.
  • 4Setting an incorrect share price or unrealistic valuation may deter investors or expose you to legal challenges from existing shareholders. You are solely responsible for the share price you set.

groupShareholder Obligations Risk

  • 1Once investors are allotted shares, they become legal shareholders of your company. They have rights under the Companies Act, 2013, including the right to receive dividends (if declared), inspect statutory records, and participate in corporate actions.
  • 2Adding a large number of retail shareholders increases your administrative obligations. Aurumaxis automates cap table management and corporate actions, but you remain the legal entity responsible for shareholder relations.
  • 3Failure to issue SH-1 certificates within the statutory timeline, or failure to file PAS-3 with MCA within 30 days of allotment, may result in penalties for your company and its directors.
  • 4Any future fundraising rounds, ESOP grants, or equity transfers must be carefully managed to avoid inadvertent violations of shareholding limits or pre-emption rights of existing investors.

lockLiquidity and Exit Risk

  • 1Shares issued through Aurumaxis are shares in an unlisted private limited company. They are inherently illiquid and cannot be freely traded on any stock exchange.
  • 2While Aurumaxis provides a P2P secondary market where existing investors can list their shares for sale, there is no guarantee that buyers will be available at any given time or at any specific price.
  • 3An IPO or acquisition is not guaranteed. Investors who commit capital to your company may not have a clear exit path for an indefinite period.
  • 4As an issuer, you should be transparent with investors about the illiquid nature of the investment and avoid making any representations about future returns, exits, or liquidity events.

fact_checkInformation Accuracy Risk

  • 1All information submitted to Aurumaxis and displayed on your company profile must be accurate, complete, and not misleading. This includes financial statements, cap table data, director information, and business descriptions.
  • 2Aurumaxis verifies basic information against MCA records but does not conduct a full due diligence audit. The responsibility for the accuracy of all disclosures lies entirely with your company.
  • 3You must promptly update your company profile and notify Aurumaxis of any material changes — including changes in directors, significant business developments, legal proceedings, or changes in financial position — especially during an active raise.
  • 4Investors rely on the information you provide to make investment decisions. Providing inaccurate or outdated information may constitute misrepresentation under the law.

cloud_offPlatform Risk

  • 1Aurumaxis is a technology platform and, like all digital platforms, may experience downtime, technical issues, or service interruptions. We do not guarantee uninterrupted access to the platform.
  • 2Aurumaxis reserves the right to suspend or delist a company from the platform at any time if it is found to be in violation of platform terms, applicable law, or if fraudulent activity is suspected.
  • 3In the event of Aurumaxis ceasing operations, the company and its shareholders retain all legal rights and obligations under applicable corporate law, independent of the platform.

Acknowledgement

By listing your company on Aurumaxis and initiating a fundraising round, you confirm that:

  • check_circleYou have read and understood this Risk Disclosure in full.
  • check_circleYou have the authority to represent your company and commit it to the obligations described herein.
  • check_circleAll information submitted to Aurumaxis is accurate, complete, and not misleading.
  • check_circleYou understand that Aurumaxis is a technology platform and not a financial advisor, legal advisor, or guarantor of any fundraising outcome.
  • check_circleYou accept full legal responsibility for compliance with the Companies Act, 2013 and all applicable laws governing private placement of equity.

For any questions regarding this disclosure or your obligations as an issuer, contact us at official@aurumaxis.com.