ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!


    Question

    When is a prospectus called a Red-herring prospectus?

    A It is a summary prospectus giving the salient features of the issue Correct Answer Incorrect Answer
    B It is prospectus that can be used to make multiple issues Correct Answer Incorrect Answer
    C It is a prospectus that does not specify the price or number of shares being offered Correct Answer Incorrect Answer
    D It is a prospectus that is issued to SEBI for approval Correct Answer Incorrect Answer

    Solution

    It is a prospectus that does not specify the price or number of shares being offered, Explanation: Section 32.Red herring prospectus: ExplanationтАФFor the purposes of this section, the expression тАЬred herring prospectusтАЭ means a prospectus which does not include complete particulars of the quantum or price of the securities included therein.

    Practice Next
    More Taxation Related Questions
    ask-question