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      Question

      Section 42 restricts private placement to “identified

      persons”. Consider: (1) Maximum limit is 200 persons per financial year. (2) Offer cannot be made using public advertisements. (3) Money must be received through banking channels. (4) Allotment must be completed within 90 days.
      A 1, 2, 3 Correct Answer Incorrect Answer
      B 2 and 3 Correct Answer Incorrect Answer
      C 1, 2, 4 Correct Answer Incorrect Answer
      D 2, 3, 4 Correct Answer Incorrect Answer
      E All of the above Correct Answer Incorrect Answer

      Solution

      Limits, procedural rules, banking channels and timeline are all part of Section 42/RPA Rules.

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