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    Question

    Which of the following statements about the filing of a shelf prospectus is accurate according to the provisions of the Companies Act?

    A A shelf prospectus is valid for a period of up to one years from the date of delivery to the Registrar, and no new prospectus is needed for subsequent offers within this period Correct Answer Incorrect Answer
    B A shelf prospectus can be filed for a period of one year, but it requires renewal every six months for ongoing offers of securities Correct Answer Incorrect Answer
    C The validity of a shelf prospectus is up to one year from the date of the first offer, and no further prospectus is required for subsequent offers of the same securities within this validity period Correct Answer Incorrect Answer
    D Once a shelf prospectus is filed, it remains valid indefinitely, and companies must submit a new prospectus for each subsequent offer of securities Correct Answer Incorrect Answer
    E A shelf prospectus must be filed at each stage of offering securities, with each prospectus valid for one year and a new one required for every subsequent offer Correct Answer Incorrect Answer

    Solution

    Section 31. Shelf prospectus: (1) Any class or classes of companies, as the  Securities and Exchange Board may provide by regulations in this behalf, may file a shelf prospectus with the  Registrar  at the stage of the first offer of  securities  included therein which shall indicate a period not exceeding one year as the period of validity of such prospectus which shall commence from the date of opening of the first offer of securities under that prospectus, and in respect of a second or subsequent offer of such securities issued during the period of validity of that prospectus, no further  prospectus  is required.

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