Question

Dhirubhai Ambani, promoter of Reliance Group submitted all relevant documents with Registrar of companies and obtain the certificate of Incorporation. The promoters and directors proceed to ensure flotation of the company and disclosed all factual information in the public document on the basis of which general public will subscribe for the shares.
a) state the document Rapid here by promoter.
b) name the stage when the shares are issued.
c) list the steps of the stage identified in the part (b).​

Answer 1

Answer:

A). Prospectus

B). Capital Subscription

• C). Steps involved here as follows
• 1. acquiring the approval of SEBI
• 2. Filling the Prospectus
• 3. Appointment of bankers, brokers, underwriters ( as the bankers help encourage the public to apply for the shares and the Underwriters are the persons who undertake to buy the shares if these are not subscribed by the public)
• 4. minimum subscription according to the guidelines of SEBI, minimum subscription should be 90% of the issued amount, ( if it is not received then the company need to refund the whole amount within 30 days)
• 5. Application to stock exchange
• 6. Allotting the shares..

hope this helps :)