📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Which of the following is true relating to Red- herring

      Prospectus?
      A It is issued prior to the issue of a prospectus Correct Answer Incorrect Answer
      B It shall carry the same obligations as are applicable to a prospectus Correct Answer Incorrect Answer
      C It shall be filed with the Registrar at least three days prior to the opening of the subscription list and the offer Correct Answer Incorrect Answer
      D All a, b & c Correct Answer Incorrect Answer
      E Both a & c Correct Answer Incorrect Answer

      Solution

      Companies Act  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.

      Practice Next
      More Administrative Interpretation and Maxims Questions
      ask-question