Discussion
A Company making a public of securities has to file a Draft Red Herring Prospects with SEBI through an eligible merchant banker prior to filling a prospects with the registrar of Companies. What information does this Draft Red Herring Prospects provide? 1. Financial details about the company 2. Price and size of offerings 3. Products details 4. Objects of raising money
Select the above correct statements.
Answer: D
Draft Red Herring prospects provide all the necessary information an investor ought to know about the company in order to make an informed decision. It contains details about the company, its promoter the projects, financial details, object of raising the money, term of the issue, use of proceeds from the offering among others. However the document does not provide information about the price or size of the offering
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