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).

• A. (A), (B), (C), (D)
• B. (A), (C), (B), (D)
• C. (B), (A), (D), (C)
• D. (C), (B), (D), (A)

Hint:

Sequence = Prospectus → Applications → Minimum Subscription → Allotment.

Answer 1

The Correct Option is B

Step 1: Sequence of Share Issuance. 1. Company issues prospectus first → (A). 2. Investors submit applications with payment → (C). 3. Company confirms minimum subscription within 120 days → (B). 4. Allotment or regret letters are dispatched → (D).

Step 2: Order the Steps. (A) → 1st, (C) → 2nd, (B) → 3rd, (D) → 4th.

Final Answer: \[\boxed{(A), (C), (B), (D)}\]