Corporate and Other LawsMCQQuestion 12520 of 300
All Questions

Under Section 32(1) of the Companies Act, 2013, a company proposing to make an offer of securities may issue a Red Herring Prospectus prior to the issue of a prospectus. At least how many days prior to the opening of the subscription list must the Red Herring Prospectus be filed with the Registrar?

Select Your Answer (Keyboard: A, B, C, D)
For any discrepancies in this question, email contact@cadada.in

Correct Answer

✅ Option A — At least 3 days prior to the opening of the subscription list

All Options:

  • AAt least 3 days prior to the opening of the subscription list ✓
  • BAt least 7 days prior to the opening of the subscription list
  • CAt least 14 days prior to the opening of the subscription list
  • DAt least 21 days prior to the opening of the subscription list

Detailed Solution & Explanation

Correct Answer: Option **A** (At least 3 days prior to the opening of the subscription list) **Statutory Provision (Section 32 - Red Herring Prospectus):** Section 32(2) provides that a company proposing to issue a red herring prospectus shall file it with the Registrar at least three days prior to the opening of the subscription list and the offer. Therefore, Option A is the correct legal position under the ICAI curriculum.

More Questions from Corporate and Other Laws

Under Section 77(1) of the Companies Act, 2013, within what initial statutory period must a company register a charge created on its property or assets with the Registrar of Companies (ROC)?

Under Rule 3(3) of the Companies (Acceptance of Deposits) Rules, 2014, what is the maximum aggregate limit of deposits that an eligible public company can accept from its members and the public?

Which of the following is a requirement for a company to buy back its securities under the Companies Act, 2013?

What is the tax treatment of buyback of shares by an unlisted company?

Explain the concept of differential rights and its significance in the context of buyback of securities.

What are the legal provisions governing the buyback of securities by a company in India?

Ready to Master Corporate and Other Laws?

Practice all 300 questions with instant feedback, earn XP, track your streaks, and ace your CA Intermediate exam.

Start Practicing — It's Free