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

Under the Companies Act, 2013, which of the following particulars must a prospectus offering securities of a company incorporated outside India contain when it is issued or distributed in India?

A prospectus for securities of an overseas-incorporated company circulated in India must be dated and signed and must state the date and country of incorporation and whether a place of business exists in India, with its principal office address, as section 387 requires.

  1. AOnly the audited financial statements of the Indian subsidiary
  2. BThe date and country of incorporation of the company and whether it has established a place of business in IndiaCorrect
  3. COnly the names of the underwriters and brokers
  4. DThe credit rating of the foreign parent's promoters

Explanation

Section 387 requires the prospectus to be dated and signed and to state, among other things, the date and country of incorporation and whether a place of business has been established in India (with the address of its principal office). The other options are not listed particulars under that section.

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