Answer-When is a prospectus called a Red-herring prospectus?

It is a prospectus that does not specify the price or number of shares being offered, Explanation Section 32.Red herring prospectus ExplanationFor 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.

Question

When is a prospectus called a Red-herring prospectus?

A It is a summary prospectus giving the salient features of the issue

B It is prospectus that can be used to make multiple issues

C It is a prospectus that does not specify the price or number of shares being offered

D It is a prospectus that is issued to SEBI for approval

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When is a prospectus called a Red-herring prospectus?

Solution