alleryStart learning →Application monies from the public must be kept in a separate account with which type of bank?
AAny cooperative society
BA scheduled bank
CA foreign bank only
DA rural bank only
Answer & Solution
Correct answer: B. A scheduled bank
Section 40(3) requires a separate account in a scheduled bank, used only for allotment adjustment or repayment.
Keep practising Prospectus and Allotment of Securities
Browse all Prospectus and Allotment of Securities questions for CA Inter, or explore more Law topics.
Related questions
Public offer under the Act includes an offer for sale by an existing shareholder through:After a penalty order for a contravening private placement, the company must refund subscrThe return of allotment after a private placement must include:A company making a private placement must not:Private placement offers go only to persons whose names the company has:Private placement information goes to the Registrar within how many days of the offer lettIf application money in a private placement is not repaid in time, interest is payable at In a private placement, securities must be allotted within how many days of receiving appl