Question:
The important steps in the procedure of share issue are:
(A) The company issues the prospectus to the public.
(B) The company has to get minimum subscription within 120 days from the issue of prospectus.
(C) The prospective investors make an application with application money.
(D) Letters of allotment are sent to those allotted shares (or regret letters to those rejected).
The important steps in the procedure of share issue are:
(A) The company issues the prospectus to the public.
(B) The company has to get minimum subscription within 120 days from the issue of prospectus.
(C) The prospective investors make an application with application money.
(D) Letters of allotment are sent to those allotted shares (or regret letters to those rejected).
(B) The company has to get minimum subscription within 120 days from the issue of prospectus.
(C) The prospective investors make an application with application money.
(D) Letters of allotment are sent to those allotted shares (or regret letters to those rejected).
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Sequence = Prospectus → Applications → Minimum Subscription → Allotment.
Updated On: Mar 26, 2026
- (A), (B), (C), (D)
- (A), (C), (B), (D)
- (B), (A), (D), (C)
- (C), (B), (D), (A)
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The Correct Option is B
Solution and Explanation
Step 1: Logical order of share issue. 1. Company first issues prospectus → (A). 2. Investors apply with application money → (C). 3. Company ensures minimum subscription within 120 days → (B). 4. Letters of allotment/regret are sent → (D).
Step 2: Arrange accordingly. (A) → first, (C) → second, (B) → third, (D) → last.
Final Answer: \[ \boxed{(A), (C), (B), (D)} \]
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