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    Question

    The details related to the Red Herring prospectus is

    mentioned under which of the following section of the Companies Act 2013?
    A Section 30 Correct Answer Incorrect Answer
    B Section 31 Correct Answer Incorrect Answer
    C Section 32 Correct Answer Incorrect Answer
    D Section 33 Correct Answer Incorrect Answer
    E Section 34 Correct Answer Incorrect Answer

    Solution

    Section 32. Red herring prospectus (1) A company proposing to make an offer of securities may issue a red herring prospectus prior to the issue of a prospectus. (2) A company proposing to issue a red herring prospectus under sub-section (1) shall file it with the Registrar at least three days prior to the opening of the subscription list and the offer. (3) A red herring prospectus shall carry the same obligations as are applicable to a prospectus and any variation between the red herring prospectus and a prospectus shall be highlighted as variations in the prospectus. (4) Upon the closing of the offer of securities under this section, the prospectus stating therein the total capital raised, whether by way of debt or share capital, and the closing price of the securities and any other details as are not included in the red herring prospectus shall be filed with the Registrar and the  Securities and Exchange Board .

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