Corporate and Other LawsMCQQuestion 12519 of 300
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Under Section 31(1) of the Companies Act, 2013, what is the maximum statutory period of validity of a 'Shelf Prospectus' from the date of opening of the first offer of securities under that prospectus?

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — Not exceeding one year

All Options:

  • ANot exceeding one year ✓
  • BNot exceeding six months
  • CNot exceeding two years
  • DNot exceeding three years

Detailed Solution & Explanation

Correct Answer: Option **A** (Not exceeding one year) **Statutory Provision (Section 31 - Shelf Prospectus):** Section 31(1) provides that a shelf prospectus shall be valid for a period not exceeding one year which shall commence from the date of opening of the first offer of securities under that prospectus. Therefore, Option A is the correct legal position under the ICAI curriculum.

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