Deemed Prospectus

Corporate & Other Laws

If allotted sold shares to the public after paying full consideration within 6 months.Is it Deemed Prospectus.

Divya Naik

CA Inter

★ 7K+

02-Mar-23 10:11

539

Answers (2)

Best Answer

Yes it will still be deemed prospectus As the word used is "either" 1) the intermediary should offer the securities for sale to public within 6 months of shares allotted to it by the company OR 2) the company shouldn't have received full consideration of shares allotted Since within 6 months it's offered for sale in the case u asked such a document will be deemed prospectus

Harshitha Kalidindi

CA Final

★ 51K+

02-Mar-23 10:22

As per section 25 of Act , A document issued by an entity for issue of shares to public within 6 months of execution of allotment contract within Company and such entity OR Issues a document beyond 6 months and Only part Consideration is paid to company, Then such Document issued to public and within Company and entity as well shall be deemed as prospectus u/s 25 and all compliances with regard to issue of Prospectus shall apply to such document. For eg :- section 26 , 447, 34 and 35

Varun Mulay

CA Final

★ 39K+

02-Mar-23 10:39