Level 1: CA Inter Law – Part I – Chapter 3 – Prospectus and Allotment of Securities MCQs Set I

Any notice, circular, advertisement or other document inviting offers from the public for the subscription or purchase of any securities of a body corporate is known as _____________.

Definition of prospectus is given u/s ________

Any notice, circular, advertisement or other document inviting offers from _________ for the subscription of any securities of __________ shall be a prospectus.

___________ included in the definition of prospectus.

Public company can issue shares by way of __________.

Private company can issue shares by way of ___________.

Public offer includes __________.

ABC Ltd. Issues shares by way of public offer and issues prospectus for that purpose, this prospectus must be ___________.

The prospectus shall contain which information and reports on financial information?

Until SEBI specifies the information and reports on financial information, which regulation shall apply in that respect of such financial information?

A declaration shall be included in the prospectus, which shall include_________

Which date shall be deemed to be the date of publication of prospectus?

No prospectus shall not be issued by or on behalf of a company or in relation to an intended company unless_______.

No prospectus shall not be issued by or on behalf of a company or in relation to an intended company unless on or before the date of its publication, there has been delivered to the registrar for filling, a copy of the prospectus signed by every person who is named therein as a ____________

Every prospectus shall state ________ that a copy of prospectus has been delivered to the registrar for filing.

No prospectus shall be valid, if it is issued after ______________ from the date on which a copy thereof is delivered to the registrar.

A prospectus shall not include a statement purporting to be made by an expert unless-

Experts includes ________.

In which section, Shelf prospectus has been defined?

A prospectus in respect of which the securities or class of securities included therein are issued for subscription in one or more issues over a certain period without the issue of a further prospectus, is known as _______

What is the validity period of shelf prospectus?

Period of 1 year shall commence from when?

ABC Ltd. Has issued shares by issuing shelf prospectus, for the period of 1 year. For second or any subsequent issue, there is no need to issue new prospectus. This statement is ____________.

Prior to second or subsequent issue under shelf prospectus, company must file ________ with the registrar.

Information memorandum shall contain all the material matters relating to _____

Where an information is filed, every time an offer of securities is made, the information memorandum together with the shelf prospectus shall be deemed to be prospectus. This statement is _______.

Red herring prospectus is defined under which section?

A prospectus which does not include complete particular of the quantum or price of the securities included therein is known as ___

A company proposing to issue red herring prospectus shall file it with the registrar at least _____ Days prior to the opening of the subscription list and offer

Upon closing of the offer of securities issued by red herring prospectus, the prospectus shall be filled with ____________.

Any variation between Red herring prospectus and prospectus can be highlighted as ____________.

ABC Ltd. issuing securities with red herring prospectus, while filling Prospectus, which matters must be therein –

A statement included in the prospectus shall be deemed as _______________, if the statement is misleading in the form and context in which it is included.

A prospectus stating that the company is regularly paying dividend, but not disclosing the fact that the company is incurring losses and that the dividend is paid out of reserves, this is _____________.

A prospectus includes any statement, which is misleading or omission of any matter in the prospectus is misleading then every person authorised the issue shall be liable u/s ___________

Which are the defences available for authorised persons available if a prospectus includes any statement, which is misleading or omission of any matter in the prospectus is misleading?

If a prospectus includes any statement, which is misleading or omission of any matter in the prospectus is misleading and any person subscribes for such securities acting on any of such statement or omission and sustain any loss as a consequence thereof, then which section is attracted?

Every person liable u/s 35 shall be liable for ____________.

A suit may be filed or any action may be taken u/s _________ by any person or group of persons or any association of person affected by any misleading statement or the omission of any matter in the prospectus.

Which is the exclusive section in companies act for penalty for fraud?

Minimum imprisonment if the fraud involves public interest –

Minimum imprisonment in any other cases i.e., fraud other than public interest –

Maximum Imprisonment –

Minimum fine –

Maximum fine –

Where any person is found guilty of fraud involving an amount of less than Rs. 10 lakh or 1% of the turnover of the company, whichever is lower, and fraud doesn’t involve public interest, any person guilty of such fraud shall be punishable for _____________.

Wrongful gain means the gain by unlawful means of property to which the person gaining is __________.

Wrongful loss means the loss by unlawful means of property to which the person losing is __________.

Deemed prospectus is defined u/s ____________.

Section __________ applies where certain members of the company propose to offer for sale to the public the shares held by them

members of ABC Ltd. Proposes to offer for sale to the public the shares held by them by issuing a document, this document is known as _______.

members of ABC Ltd. Proposes to offer for sale to the public the shares held by them by issuing a document, The rules and laws will be applicable to this document as ___________.

members of ABC Ltd. Proposes to offer for sale to the public the shares held by them by issuing a document, The expenses incurred for the same shall be ___________

No allotment of securities can be done unless _______

The application money on every security shall not be less than _________ or any other percentage or amount specified by SEBI

Amount stated in the prospectus as the minimum subscription is subscribed and Sum payable on application in respect of minimum subscription is received by the company within ____________ or such other period as may be specified by SEBI

If subscription money not received within 30 days, then all money received shall be returned. This statement is

Whenever a company makes any allotment of securities, it shall file _____________ with the registrar.

At the time of any default during allotment, every officer in default shall be liable for ______________

If subscription money is not received within 30 days, then all money received shall be returned within _______________.

If subscription money not received within 30 days, then all money received shall be returned within 15 days, and if not repaid then all officers or directors in default shall be liable for money with interest @______________.

If subscription money not received within 30 days, then all money received shall be returned within 15 days, and if not repaid then all officers or directors in default shall be liable ____________________ for money along with the interest @15%.