Question
When is a prospectus called a Red-herring prospectus?
Solution
It is a prospectus that does not specify the price or number of shares being offered, Explanation: Section 32.Red herring prospectus: Explanation—For the purposes of this section, the expression “red herring prospectus” means a prospectus which does not include complete particulars of the quantum or price of the securities included therein.
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