New 👉 Ask your RBI Grade B 2025 Preparation Queries Here!!

    Question

    As per section 25 of the Companies Act what constitutes

    evidence that an allotment of securities was made with a view to the securities being offered for sale to the public?
    A If an offer is made within three months after the allotment or agreement to allot. Correct Answer Incorrect Answer
    B If an offer is made within six months after the allotment or agreement to allot. Correct Answer Incorrect Answer
    C If the whole consideration is received by the company before the offer is made. Correct Answer Incorrect Answer
    D Both a & c Correct Answer Incorrect Answer
    E Both b & c Correct Answer Incorrect Answer

    Solution

    Companies Act Section 25. Document containing offer of securities for sale to be deemed prospectus: (2) For the purposes of this Act, it shall, unless the contrary is proved, be evidence that an allotment of, or an agreement to allot, securities was made with a view to the securities being offered for sale to the public if it is shown — (a) that an offer of the securities or of any of them for sale to the public was made within six months after the allotment or agreement to allot; or (b) that at the date when the offer was made, the whole consideration to be received by the company in respect of the securities had not been received by it.

    Practice Next