Prospectus

Question 1

Prospectus may not be issued

Answer 1

A) When shares are offered to existing SHs
B) When issue is uniform in all respects with Shares or Debentures previously issued in a Recognised Stock Exchange
C) When shares are not issued to public
D) Underwriting Agreement

Question 2

Matters to be stated in Prospectus

Answer 2

A) Dated and Signed by all directors/proposed directors OR Attorney
B) Should include Reports and Financial Info after approval by CG and SEBI
C) 90 days warranty after delivery to ROC
D) If Expert Opinion is used then, statement from him stating that he was not involved in the formation/promotion/management of the CO. and written content and not withdrawn.

Question 3

PUNISHMENT FOR FRAUD - Sec. 447

Answer 3

A) < Rs. 10 lakh or 1% or turnover whichever is lower (public interest not involved) –> Upto Rs. 50 Lakh or/and Upto 5years Jail
B) > Rs. 10 lakh or 1% or turnover whichever is lower (public interest not involved) –> Min. - Equal to Fraud and Max. - 3X Fraud and Min. 6 months jail and Max. 10 years jail
C) Fraud involves Public Interest - Min. - Equal to Fraud and Max. - 3X Fraud and Min. 3 years jail and Max. 10 years jail

Question 4

Private Placement - Sec. 42

Answer 4

A) 200 people per year max. but exclude QIB and ESOPs
B) Securities which can be offered - a. Equity shares - 200 per year b. Convertible Preference Shares - 200 per year c. Convertible Debentures - 200 per year
C) PAS - 4 —> Sent within 30 days of recording names of such person.
D) Co. shall allot securities within 60 days and if it fails, then within 15 days from the completion of 60 days, else interest @ 12% pa SI.
E) Penalty - Amount Raised or Rs. 2 Crores whichever is

Question 5

Private Placement - Sec. 42

Answer 5

A) 200 people per year max. but exclude QIB and ESOPs
B) Securities which can be offered - a. Equity shares - 200 per year b. Convertible Preference Shares - 200 per year c. Convertible Debentures - 200 per year
C) PAS - 4 —> Sent within 30 days of recording names of such person.
D) Co. shall allot securities within 60 days and if it fails, then within 15 days from the completion of 60 days, else interest @ 12% pa SI.
E) Penalty - Amount Raised or Rs. 2 Crores whichever is