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Application money received under a private-placement offer must be allotted by the company within:
Answer & Solution
Correct answer: B.
1. Section 42 requires that securities be allotted within 60 days of the receipt of application money.
2. Failure to allot within 60 days triggers refund with interest.
3. Hence (C).
_Source: ICAI BoS CA Inter Paper 2 — Prospectus and Allotment_