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CS Professional · Strategic Management and Corporate Finance · Raising of Funds from Equity and Procedural Aspects - Public Funding

Which statement is correct about a company making a public offer, including a further public offer, under the Companies Act, 2013?

Every company making a public offer must issue securities only in dematerialised form, complying with the Depositories Act, 1996. Since public offer includes a further public offer, the requirement applies to later offers too, regardless of the articles.

  1. AIt may issue securities in physical form if its articles permit
  2. BIt must issue the securities only in dematerialised form under the Depositories Act, 1996Correct
  3. CDematerialisation applies only to the first public offer, not later offers
  4. DIt may choose dematerialisation only if it is listed

Explanation

Section 29(1)(a) requires every company making a public offer to issue securities only in dematerialised form, complying with the Depositories Act, 1996. The Explanation to section 23 includes further public offers within 'public offer', so the rule is not limited to the first offer.

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