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    Question

    The red herring prospectus has to be filed with the RoC at least how many days before the open issue opens?

    A 1 day Correct Answer Incorrect Answer
    B 2 days Correct Answer Incorrect Answer
    C 3 days Correct Answer Incorrect Answer
    D 5 days Correct Answer Incorrect Answer
    E 7 days Correct Answer Incorrect Answer

    Solution

    Red Herring Prospectus - (Section 32) ·         issued before a prospectus ·         It is an offer document used in case of a book built public issue. It contains all the relevant details except that of price or number of shares being offered. ·         It is filed with RoC at least 3 days before the issue opens ·         Upon the closing of the offer of securities, the prospectus stating therein the total capital raised , whether by way of debt or share capital, and the closing price of the securities and any other details as are not included in the red herring prospectus shall be filed with the Registrar and SEBI.

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