Question

According to the provisions of the Companies Act for issuing a red herring prospectus, which of the following statements is correct?

Q: Answer-According to the provisions of the Companies Act for issuing a red herring prospectus, which of the...

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.

A A company must issue a red herring prospectus only after the final prospectus is filed and cannot issue it before

B A red herring prospectus can be issued prior to the final prospectus, but it does not include details about the price of the securities

C A company can issue a red herring prospectus only if it has already received approval from the NCLT

D Issuing a red herring prospectus is prohibited; a company must issue a final prospectus directly before making an offer of securities

E A red herring prospectus must include the final offer price of the securities before it is issued to the public

Practice Next

According to the provisions of the Companies Act for issuing a red herring prospectus, which of the following statements is correct?

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