Question

State the following statement is True or False:

A document issued to public for collection of capital is prospectus.

• A. True
• B. False

Answer 1

The correct option is A True

A document issued to the public for the collection of capital is a prospectus- this is a true statement. The invitation to the public for capital subscriptions is through a prospectus. The prospectus provides details about the offer of sale to the public. It is issued by SEBI.Hence the statement is true.