Skip to content

CA Intermediate · Corporate and Other Laws · Prospectus and Allotment of Securities

Nandini Ltd allotted shares to applicants and must file a return of allotment with the Registrar. Which statement about the return of allotment is correct?

A company must file a return of allotment with the Registrar within thirty days of allotting securities, in the prescribed form. The duty applies to public and private allotments alike, at par or premium, and does not depend on any request from the Registrar.

  1. AIt is required only for allotments made to the public, not for private placements
  2. BIt must be filed within 30 days of allotment, in the form prescribedCorrect
  3. CIt is filed only if the Registrar asks for it
  4. DIt is required only when shares are allotted at a premium

Explanation

After any allotment of securities, the company must file a return of allotment with the Registrar within thirty days, in the prescribed form. It applies to both public issues and private placements and is not limited to premium issues. It is a mandatory filing, not on demand.

Did you get it right without looking?

One question tells you little. A timed set on Prospectus and Allotment of Securities shows your real accuracy, how long you take and where you lose marks.

Practise Prospectus and Allotment of SecuritiesFree diagnostic mock

More Prospectus and Allotment of Securities questions