Restriction on the use of money through prospectus shall not be used For buying trading or otherwise...........

Companies Act-Phase (I & II) Prospectus

Restriction on the use of money through prospectus shall not be used For buying, trading or otherwise dealing in equity shares of any other listed company. True or False.

True

False

Partly True

Partly False

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Explanation:

As per section 27of Companies Act 2013,

Provided further that such company shall not use any amount raised by it through prospectus for buying, trading or otherwise dealing in equity shares of any other listed company.

(2) The dissenting shareholders being those shareholders who have not agreed to the proposal to vary the terms of contracts or objects referred to in the prospectus, shall be given an exit offer by promoters or controlling shareholders at such exit price, and in such manner and conditions as may be specified by the Securities and Exchange Board by making regulations in this behalf.