When does a company interact with SEBI?

Promotion

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Incorporation

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Capital Subscription

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None of the above

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Solution

The correct option is C
Capital Subscription

A company interacts with SEBI in the capital subscription stage as it is required to raise funds from the public through share subscription. SEBI ensures to protect the interest of shareholders. Thus it is necessary to get the approval of SEBI before going ahead with the capital subscription.

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Similar questions

(a) Promotion, Commencement of Business, Capital

(d) Capital Subscription, Promotion, Incorporation,

Stages in the formation of a public company are in the following manner

(a) Promotion, Commencement of business, Incorporation, Capital Subscription

(b) Incorporation, Capital Subscription, Commencement of business, promotion

(d) Capital Subscription, Promotion, Incorporation, Commencement of Business

Which represents the right order for the formation of a public company?

Preliminary Contracts are signed

(a) before the incorporation

(b) after incorporation but before capital subscription

(d) after commencement of business

A provisional contract is signed by promoters before the incorporation of the company.

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