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    Question

    Which of the following is true relating to Shelf

    Prospectus?
    A Filed with the Registrar at the stage of the first offer of securities Correct Answer Incorrect Answer
    B It is valid for a period of one year from the date of opening of the first offer of securities under that prospectus Correct Answer Incorrect Answer
    C An information memorandum containing all material facts relating to new charges created, changes in the financial position of the company as have occurred between the first offer and the succeeding offer of securities is required to be filed by the company Correct Answer Incorrect Answer
    D All a b & c Correct Answer Incorrect Answer
    E Both b & c Correct Answer Incorrect Answer

    Solution

    Companies Act 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. (2) A company filing a shelf prospectus shall be required to file an information memorandum containing all material facts relating to new charges created, changes in the financial position of the company as have occurred between the first offer of securities or the previous offer of securities and the succeeding offer of securities and such other changes as may be prescribed, with the Registrar within the prescribed time, prior to the issue of a second or subsequent offer of securities under the shelf prospectus.

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