New NABARD Workshop - Last 4 year trend. March 5 at 5 PM. Register here

    Question

    A Private Company can raise funds in how many ways

    _____________________
    A Right Issue Correct Answer Incorrect Answer
    B Prospectus Correct Answer Incorrect Answer
    C Private Placement Correct Answer Incorrect Answer
    D Both (a) & (c) Correct Answer Incorrect Answer

    Solution

    Explanation: Section 23 Public Offer & Private Placement- ( 1) A public company may issue  securities  — (a) to public through  prospectus (herein referred to as “public offer”) by complying with the provisions of this Part; or (b) through private placement by complying with the provisions of Part II of this Chapter; or (c) through a rights issue or a bonus issue in accordance with the provisions of this Act and in case of a  listed company  or a company which intends to get its securities listed also with the provisions of the  SEBI Act, 1992 and the rules and regulations made thereunder (2) A private company may issue securities— (a) by way of rights issue or bonus issue in accordance with the provisions of this Act; or (b) through private placement by complying with the provisions of Part II of this Chapter.

    Practice Next