CA Inter P2 · Chapter 3 · Question 1 of 10
Under section 23(1), a public company may issue securities to the public:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Through a prospectus
Explanation
Section 23(1) states that a public company may issue securities to the public through a prospectus. It may also issue them through private placement, by way of a rights issue or a bonus issue. Section 23(2) allows a private company to issue securities only by rights issue, bonus issue or private placement.
More Prospectus and Allotment of Securities MCQs
- Q3A red herring prospectus under section 32 is a prospectus that:
- Q4As per section 31, a shelf prospectus is valid for a period not exceeding:
- Q5Which of the following persons is NOT liable to pay compensation under section 35 for a misleading statement in a prospectus?
- Q6Under section 39(2), the amount payable on application on every security offered in a public issue shall not be less than:
- Q7Under section 39(3), if the stated minimum amount has not been subscribed and the sums payable on application have not been received…