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Under Section 23(1) of the Companies Act, 2013, what are the modes through which a public company may issue securities?

Question and options

Under Section 23(1) of the Companies Act, 2013, what are the modes through which a public company may issue securities?
  1. Public offer/prospectus
  2. Individual offers/pamphlets
  3. Private offers in compliance with the provisions of Part II of Chapter 3 or rights issue or bonus issue by complying with the provisions of the Act and in the case of Listed Companies by complying with the provisions of the SEBI Act, 1992 and rules and regulations made under it
  4. Public offer/prospectus or private placements in compliance with the provisions of Part II of Chapter 3 or rights issue or bonus issue by complying with the provisions of the Act and in the case of Listed Companies by complying with the provisions of the SEBI Act, 1992 and rules and regulations made under it

Answer and explanation

Correct answer: D - Public offer/prospectus or private placements in compliance with the provisions of Part II of Chapter 3 or rights issue or bonus issue by complying with the provisions of the Act and in the case of Listed Companies by complying with the provisions of the SEBI Act, 1992 and rules and regulations made under it
Section 23 of the Companies Act 2013: a public company may issue securities by public offer through a prospectus, by private placement (Part II of Chapter III), or by rights or bonus issue, and listed companies must also comply with SEBI law. Only the option beginning with public offer/prospectus and including private placements is complete; the one beginning with private offers omits the public offer.

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