CSEET · Business Laws and Management · Elements of Company Law
A company proposes to issue a red herring prospectus before making its public offer. Under the Companies Act, 2013, by when must it be filed with the Registrar?
A red herring prospectus must be filed with the Registrar at least three days before the opening of the subscription list and the offer, as laid down in Section 32(2) of the Companies Act, 2013.
- AAt least three days before the opening of the subscription list and the offerCorrect
- BAt least thirty days before the opening of the subscription list
- COn the day the subscription list closes
- DWithin three days after the offer opens
Explanation
Section 32(2) requires a company issuing a red herring prospectus to file it with the Registrar at least three days before the subscription list and the offer open. Filing after the opening, or on closing, does not satisfy this rule. Thirty days is not the prescribed period.
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