Page 100 - DCOM106_COMPANY_LAW

Unit 7: Prospectus

The applicant or proposed subscriber can exercise his right to withdraw from the Notes
application, on any intimation of variation within seven days from the date of such
intimation and, shall indicate such withdrawal in writing to the company and the
underwriters.

Any application for subscription, which is acted upon by the company or underwriters or
bankers to the issue, without having given enough information of any variations, or the
particulars of withdrawing the offer or an opportunity for cancelling the post-dated cheques
or stock-invest or stop payments for such payments shall be void. Further, the applicants
shall be entitled to receive a refund or return of its post-dated cheques or stock-invest or
subscription moneys on cancellation of its application, as if the said application had never
been made and, the applicants are entitled to receive back their original application and
interest at 15%, from the date of encashment till payment of realisation.
Upon the closing of the offer of securities, a final prospectus stating therein the total
capital raised, whether by way of debt or share capital and, the closing price of the securities
and any other details as were not complete in the red-herring prospectus, shall be filed in
the case of listed public company with SEBI and registrar and in any other case with the
registrar only.

Self Assessment

5. ....................................... are required to file prior to making second and subsequent issue of
securities in case shelf prospectus are filed:
(a) Information memorandum (b) Information articles
(c) Form 13 (d) None of the above
6. Information memorandum + shelf prospectus together constitutes ............................

(a) Memorandum (b) Articles
(c) Prospectus (d) None of the above
7. Validity period of information memorandum is ..........................
(a) 1 year (b) 2 years

(c) 3 years d. 4 years
8. ................................. prospectus were issued in order to test the market before finalizing
issue size/ price.

(a) Deemed (b) Shelf
(c) Red herring (d) None of the above
9. If there is any variation in case of R.H.P ............................... days should be given for
withdrawal of application
(a) 1 (b) 3
(c) 5 (d) 7
10. In case of redherring prospectus, the refund is made with an interest @ ________

(a) 12 (b) 13
(c) 15 (d) 16

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