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CS Professional · Strategic Management and Corporate Finance · Foreign Funding - Instruments, Laws and Procedures

A foreign company incorporated outside India proposes to issue Indian Depository Receipts. Which provisions of the Companies Act, 2013 on prospectus-related matters apply to such an issue as they apply to an Indian company's prospectus?

Sections 34 to 36, both inclusive, apply to the issue of Indian Depository Receipts by a foreign company. Section 391(1)(ii) of the Companies Act, 2013 extends these prospectus-related provisions to IDR issues as they apply to an Indian company's prospectus.

  1. ASections 34 to 36, both inclusiveCorrect
  2. BSections 41 to 43 only
  3. CSection 234 only
  4. DSections 376 to 378

Explanation

Section 391(1)(ii) states that sections 34 to 36 (both inclusive) apply to the issue of Indian Depository Receipts by a foreign company. Section 234 concerns mergers with foreign companies, and section 376 concerns winding up of foreign companies.

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