BANK SEBI Grade A Phase 1 & Phase 2 Mock Test 2024 Legal Aspects of Business The Companies Act, 2013
According to Section 42, what are the specific procedural steps a company must follow to legally issue shares on a private placement basis, and what are the constraints regarding advertising?
1
Issue offer letters and publicly market securities; unrestricted marketing.
2
Direct bank payments and confidential offer letters; no public advertising.
3
Regulatory body approval and media advertising; subject to limitations.
4
Board resolution and social media marketing; generally prohibited.
5
Shareholder consensus and open market promotion; limited to specified sectors.