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    Question

    All monies received on application from the public for

    subscription to the securities shall be kept in a separate bank account in a scheduled bank and shall not be utilised for any purpose other than_________________
    A For adjustment against allotment of securities where the securities have been permitted to be dealt with in the stock exchange or stock exchanges specified in the prospectus Correct Answer Incorrect Answer
    B For the repayment of monies within the time specified by the Securities and Exchange Board, received from applicants in pursuance of the prospectus, where the company is for any other reason unable to allot securities Correct Answer Incorrect Answer
    C Either of the above Correct Answer Incorrect Answer
    D Both (a) & (b) Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Section 40 Securities to be dealt with in stock exchanges - (3) All monies received on application from the public for subscription to the securities shall be kept in a separate bank account in a scheduled bank and shall not be utilised for any purpose other than— (a) for adjustment against allotment of securities where the securities have been permitted to be dealt with in the stock exchange or stock exchanges specified in the prospectus; or (b) for the repayment of monies within the time specified by the  Securities and Exchange Board , received from applicants in pursuance of the prospectus, where the company is for any other reason unable to allot securities

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