Question
Which of the following is true relating to Red- herring
Prospectus? a. It is issued prior to the issue of a prospectus b. It shall carry the same obligations as are applicable to a prospectus c. It shall be filed with the Registrar at least three days prior to the opening of the subscription list and the offerSolution
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.
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