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    Question

    What is the validity period of a Shelf Prospectus as per

    the Companies Act?
    A 6 months Correct Answer Incorrect Answer
    B 1 year Correct Answer Incorrect Answer
    C 2 years Correct Answer Incorrect Answer
    D 3 years Correct Answer Incorrect Answer
    E 5 years Correct Answer Incorrect Answer

    Solution

    Section 31.Shelf prospectus: (1) Any class or classes of companies, as theĀ  Securities and Exchange Board may provide by regulations in this behalf, may file a shelf prospectus with theĀ  RegistrarĀ  at the stage of the first offer ofĀ  securitiesĀ  included therein which shall indicate a period not exceeding one year as the period of validity of such prospectus which shall commence from the date of opening of the first offer of securities under that prospectus, and in respect of a second or subsequent offer of such securities issued during the period of validity of that prospectus, no furtherĀ  prospectusĀ  is required.

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