Question

A public company can raise the required funds from the public by means of issue of securities (share and debentures etc.). For doing the same it has a issue of prospectus which is an invitation to the public to subscribe the capital of the conpany and under- go various other formalities. Explain all the steps required to raise funds from general public.​

Answer 1

Answer:

The steps required to raise funds from the public i.e. capital subscription by the company are as follows :

1. Prior approval from SEBI to raise funds from the public.

2. A copy of the prospectus or statement in lieu of prospectus to be filed with the Registrar of Companies.

3. Appointment of bankers, brokers, under-writers, etc.

4. Application to be made to stock exchange for permission to deal in shares or debentures.

5. Allotment of shares (after obtaining minimum subscription amount).

6. To file return of allotment with the Registrar of Companies.

Explanation:

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