Question

Match the following

• A. Name Approval
• B. Necessary Documents
• C. Technical
• D. SEBI Approval

Answer 1

* Promotion: It includes all the steps right from conception of an idea to starting the company, till it is formed. Name approval is amongst the stages of promotion. Two companies cannot have identical names.
*Incorporation Stage: It is the second stage after promotion. Incorporation refers to the registration of the company under Companies Act,1956. Necessary documents are amongst the steps under the incorporation stage. The documents need to be submitted to the registrar.
*Feasibility: The promoter does a detailed investigation regarding cost, profitability, production process, the demand for the product etc. Feasibility includes Technical, Economic and Financial feasibility. Sometimes the idea is good but may not be technically feasible.
*Capital Subscription: After getting the certificate of incorporation, public limited companies have to perform the third stage and get the certificate of commencement. A public limited company needs to submit all the required information with SEBI before issuing its securities in the capital market.