Question
A Red Herring Prospectus is
issued:Solution
Explanation: •As per Section 32 of the Companies Act, 2013, a Red Herring Prospectus is a prospectus which does not include complete particulars of the price or the number of securities offered. •It is filed with the Registrar of Companies prior to the issue opening, typically used in book-building issues where price discovery happens based on investor bids. •After finalizing the price and quantity, the company files a final prospectus.
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