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In the context of companies intending to get listed, who administers matters relating to non-payment of dividend?
In the context of companies intending to get listed, who administers matters relating to non-payment of dividend?
Who must sign the deemed prospectus in the case of a firm?
Who must sign the deemed prospectus in the case of a firm?
Deemed prospectus is issued by whom?
Deemed prospectus is issued by whom?
What is NOT a way through which a private company can make an issue of securities?
What is NOT a way through which a private company can make an issue of securities?
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How long must the securities be offered or issued to the public within, once the agreement is made between the main company and issuing house?
How long must the securities be offered or issued to the public within, once the agreement is made between the main company and issuing house?
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Who are deemed to be directors of the main company when a deemed prospectus is signed?
Who are deemed to be directors of the main company when a deemed prospectus is signed?
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Which type of company can issue securities through Private Placement?
Which type of company can issue securities through Private Placement?
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In which jurisdictions can public companies issue securities for listing purposes?
In which jurisdictions can public companies issue securities for listing purposes?
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Who administers matters related to non-payment of dividend for listed companies?
Who administers matters related to non-payment of dividend for listed companies?
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Which regulatory body has the power to regulate the issue and transfer of securities for listed companies?
Which regulatory body has the power to regulate the issue and transfer of securities for listed companies?
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Under what circumstances can the Central Government exempt public companies from certain provisions of the Companies Act?
Under what circumstances can the Central Government exempt public companies from certain provisions of the Companies Act?
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Which type of issue can a private company use to raise capital according to the text?
Which type of issue can a private company use to raise capital according to the text?
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What kind of document is considered a prospectus according to the text?
What kind of document is considered a prospectus according to the text?
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In the context of deemed prospectus, what does the issuing company represent?
In the context of deemed prospectus, what does the issuing company represent?
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What is a 'red herring prospectus' according to the text?
What is a 'red herring prospectus' according to the text?
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Why are the prospectus provisions also made applicable to the main company in deemed prospectus situations?
Why are the prospectus provisions also made applicable to the main company in deemed prospectus situations?
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What happens if the whole consideration is not received by the main company before an offer is made to the public by the issuing house?
What happens if the whole consideration is not received by the main company before an offer is made to the public by the issuing house?
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What is a 'shelf prospectus' as mentioned in the text?
What is a 'shelf prospectus' as mentioned in the text?
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Study Notes
Key Concepts in Company Securities
- A private company cannot make an issue of securities through a public offer.
Directors and Partners in Issuing House
- Directors or partners of the issuing house are deemed to be directors of the main company.
Deemed Prospectus
- A document containing an offer of securities for sale is deemed a prospectus if it is issued by an issuing house company or firm.
- A deemed prospectus is signed by directors or partners of the issuing house.
- Securities must be offered or issued to the public within 6 months of the agreement between the main company and the issuing house.
Public Offer
- A public company may issue securities through a public offer, right issue, and bonus issue.
- A private company may issue securities through private placement.
Regulation of Securities
- Matters relating to non-payment of dividend in companies intending to get listed are administered by SEBI.
- The Central Government may exempt certain classes of public companies from provisions of Chapter III, Chapter IV, Section 89, Section 90, or Section 127.
- Listed companies and companies intending to get listed are regulated by SEBI regarding issue and transfer of securities.
- Other companies are regulated by the Central Government, Registrar, or Tribunal regarding issue and transfer of securities.
Prospectus
- A prospectus includes documents, notices, circulars, advertisements, or other documents inviting offers from the public for subscription or purchase of securities.
- Types of prospectus include deemed prospectus, red herring prospectus, and shelf prospectus.
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Description
Test your knowledge on Chapter III of the Companies Act, focusing on the topics of prospectus, allotment of securities, public offer, private placement, right issue, and bonus issue.
