Question

. Directors take approval from where before issue of shares in capital market? *

1 point

a. Government

b. SEBI

c. Chamber of Commerce

d. None of these

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Answer 1

Answer: The company follows the rules prescribed by Companies Act 2013 while issuing the shares. Issue of Prospectus, Receiving Applications, Allotment of Shares are three basic steps of the procedure of issuing the shares. The process of creating new shares is known as Allocation or allotment.