New 55% Off on All Courses - Enroll Now! Click Here

    Question

    According to the provisions of the Companies Act for

    issuing a red herring prospectus, which of the following statements is correct?
    A A company must issue a red herring prospectus only after the final prospectus is filed and cannot issue it before Correct Answer Incorrect Answer
    B A red herring prospectus can be issued prior to the final prospectus, but it does not include details about the price of the securities Correct Answer Incorrect Answer
    C A company can issue a red herring prospectus only if it has already received approval from the NCLT Correct Answer Incorrect Answer
    D Issuing a red herring prospectus is prohibited; a company must issue a final prospectus directly before making an offer of securities Correct Answer Incorrect Answer
    E A red herring prospectus must include the final offer price of the securities before it is issued to the public Correct Answer Incorrect Answer

    Solution

    Section 32. Red herring prospectus: (1) A company proposing to make an offer of  securities  may issue a red herring prospectus prior to the issue of a  prospectus.

    Practice Next