CA Inter P2 · Chapter 3 · Question 4 of 10
As per section 31, a shelf prospectus is valid for a period not exceeding:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) One year from the date of opening of the first offer of securities under it
Explanation
Section 31(1) allows prescribed classes of companies to file a shelf prospectus. Under it, no further prospectus is needed for subsequent offers within a period of validity not exceeding one year from the date of opening of the first offer. An information memorandum must be filed before each subsequent offer.
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