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CS Professional · Strategic Management and Corporate Finance · Raising of Funds from Debt and Procedural Aspects

Under Section 33(2) of the Companies Act, 2013, what right does a person have in relation to the prospectus during a public issue of NCDs?

Any person may request a copy of the prospectus before the closing of the subscription list and the offer, and the company must furnish it, as Section 33(2) provides. The right is not restricted to allottees, large applicants or inspection at the Registrar's office.

  1. ATo receive a copy of the prospectus on request made before the closing of the subscription list and the offerCorrect
  2. BTo receive a copy only after allotment is completed
  3. CTo receive a copy only if he applies for a minimum quantity of NCDs
  4. DTo inspect the prospectus only at the Registrar's office

Explanation

Section 33(2) states that a copy of the prospectus shall, on a request being made by any person before the closing of the subscription list and the offer, be furnished to him. The right is not tied to allotment, minimum application size or inspection at the Registrar's office.

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