Home
Class 12
BUSINESS STUDIES
ABC Ltd. issued prospectus for the subsc...

ABC Ltd. issued prospectus for the subscription of its shares for RS. 500 crores in 2008. The issue was oversubscribed by 20 times. The company issued shares to all the applicants on pro-rata basis. Later SEBI inspected the prospectus and found some misleading statement about the management of the company in it. SEBI imposed a penalty of RS. 5 crores and banned its three executive directors for dealing in securities market for three years.
Identify the function and its type performed by SEBI in the above case.

Text Solution

Verified by Experts

Protective function and probibition of fraudulent and unfair trade practices.
Promotional Banner

Similar Questions

Explore conceptually related problems

Issue Of Prospectus

Sangam Ltd. invited applications for 10,000 Equity Shares of Rs. 100 each issued at par. The amount was payable on application. The issue was oversubscribed by 2,000 shares and allotment was made on pro rata basis. Pass necessary Journal entries.

Is it compulsory for a Private Ltd. Company to issue prospectus?

Shakti Ltd. Issues 1,00,000 shares of ₹ 10 each for public subscription . Application (along with money) are received for 80,000 shares . Can the company allot these shares ? Explain .

Yamuna Ltd., invited general public to subscribe for its public issue of ₹ 10 crore (10 lakh shares of ₹ 100 each ) through issue of prospectus . However , the company received applications for 8 lakh shares . Can the company proceed with allotment of shares ? Give reasons in support of your answer .

(Issue of Shares to Promoters and Underwriters). Dee Ltd. issued 2,500 shares of Rs. 10 each credited as fully paid to the promoters for the services rendered to incorporate the company and also issued 2,000 shares of Rs. 10 each credited as fully paid to the underwriters for their underwriting services. Journalise these transactions.

Recommended Questions
  1. ABC Ltd. issued prospectus for the subscription of its shares for RS. ...

    Text Solution

    |

  2. जीवन की उत्पत्ति के समय स्वतंत्र अवस्था में नहीं पायी जाती थी-

    Text Solution

    |

  3. जल प्रदूषण से आप क्या समझते है ? जल प्रदूषण के कारणो तथा मानव स्वास्थ...

    Text Solution

    |

  4. किसी लम्बी धारावाही परिनालिका के भीतर उसके अक्ष पर चुम्बकीय क्षेत्र का...

    Text Solution

    |

  5. चुम्बकीय आघूर्ण का सूत्र तथा इसका SI मात्रक लिखिए।

    Text Solution

    |

  6. ट्रांसफॉर्मर का नामांकित चित्र तथा इसके परिणमन अनुपात का सूत्र...

    Text Solution

    |

  7. पाच वर्ष पूर्व, A की आयु B से तीन गुनी थी तथा दस वर्ष बाद A की आयु B स...

    Text Solution

    |

  8. एक भिन्न इस प्रकार है कि यदि इसके अंश को 3 से गुणा किया जाए और हर से 3...

    Text Solution

    |

  9. एक छात्रावास के मासिक व्यय का एक भाग नियत है तथा शेष इस पर निर्भर करता...

    Text Solution

    |