Question

Statement in lieu of prospectus can be filed by a public company going for a public issue.

Answer 1

The statement is False.
A public limited company inviting applications from the general public to subscribe to its shares or debentures is mandatorily required to file a prospectus with the Registrar of Companies. However, if a company is confident that it can raise funds through private sources i.e. through friends, relatives or some private arrangements as done by a private company, then it may file a statement in lieu of prospectus with the Registrar of Companies atleast three days before making the allotment.