Question

State and explain briefly the steps required to raise funds from the public.

Answer 1

The steps required to raise funds from the public, i.e. capital subscription by the company are as follows:

1. Prior approval from SEBI to raise funds from the public

2. A copy of the prospectus or statement in lieu of prospectus to be filed with the Registrar of Companies

3. Appointment of bankers, brokers, underwriters, etc.

4. Application to be made to stock exchange for permission to deal in shares or debentures

5. Allotment of shares (after obtaining minimum subscription amount)

6. To file the return of allotment with the Registrar of Companies