Prospectus Part 1

Prospectus shall not be valid if it is issued more than ____ after delivery of copy thereof to RoC

• 90 days

• 60 days

• 30 days

• 120 days

Which of the following is not required for variation of terms of contract referred to in the prospectus

• OR

• Details of resolution to be published in Newspaper (Form PAS-1)

• Details of resolution to be published in website

• Dissenting shareholder to be given exit offer by controlling shareholders

Answer explanation

Prior approval by way of SR is required, not OR

The validity of shelf prospectus shall not exceed ___ commencing from the date of ___

• 1 year from the date of filing with ROC

• 90 days from the date of filing with ROC

• 1 year from the date of opening of first offer of securities

• 90 days from the date of opening of first offer of securities

Which of the following shall not be contained in Information memorandum:

• New charges created

• Changes in financial position of co. between previous offer and subsequent offer

• Other prescribed information

• Change in top level management

Red Herring Prospectus is to be filed with RoC when?

• At least 3 days prior to opening of subscription list

• At least 7 days prior to opening of subscription list

• At least 30 days prior to opening of subscription list

• On or before opening of subscription list

Application money shall not be less than:

• 5% of the nominal amount of securities

• 10% of the nominal amount of securities

• 5% of the issue price

• 10% of the issue price

Answer explanation

Application money should not be less than 5% of nominal value of securities and not the issue price

Where the minimum amount of subscription is not received by the co., the money shall be refunded within:

• 15 days of the close of issue

• 30 days of close of issue

• 15 days of receipt of money

• 30 days of receipt of money