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CS Executive · Capital Market and Securities Laws · Issue of Capital and Disclosure Requirements

Kaveri Foods Ltd proposes to issue a red herring prospectus before its public offer. By when must it be filed with the Registrar, as per the Companies Act, 2013?

It must be filed with the Registrar at least three days before the opening of the subscription list and the offer. The Companies Act, 2013 sets this minimum period so the document is on record before investors can subscribe to the offer.

  1. AAt least three days prior to the opening of the subscription list and the offerCorrect
  2. BAt least seven days prior to the opening of the subscription list
  3. COn the closing date of the offer
  4. DWithin fifteen days after the allotment of securities

Explanation

The Act requires a red herring prospectus to be filed with the Registrar at least three days before the subscription list and the offer open. Filing after opening or closing does not meet this requirement.

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