CA Inter P2 · Chapter 3 · Question 3 of 10
A red herring prospectus under section 32 is a prospectus that:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Does not include complete particulars of the quantum or price of the securities included in it
Explanation
As per the Explanation to section 32, a red herring prospectus does not include complete particulars of the quantum or price of the securities. Once the offer closes, the prospectus stating the total capital raised, the closing price and any details left out must be filed with the Registrar and SEBI. A prospectus covering several issues over a period is a shelf prospectus under section 31.
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