Question

as per M. R.T.P. Act, new shares can be offered to persons other than existing shareholders-
(A) To any person
(B) To directors
(C) To debenture holders
(D) To creditors​

Answer 1

Option C is correct. According to MRTP Act, Debenture Holders can be offered new shares.

What is MRTP Act?

• The MRTP Act stands for "Monopolistic and Restrictive Trade Practice."
• In other words, it was increased to protect the interest of the customer.
• The purpose of this Act was to keep an eye on the market by regulating the price index.
• Thus, Debenture holders can be issued new shares.
• However, these shares are limited to "equity shares only."

So, option C is correct.

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