Correct sequence of issue of shares is -
A. Receipt of Application
B. Issue of Prospectus
C. Letter of Allotment of Shares
D. Letter of Regret
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → B, A, C, D
Shares are issued to the public in a fixed order: the company first invites the public, then receives applications, and only then decides who gets shares.
First, B. Issue of Prospectus — the invitation to the public to subscribe for shares.
Then, A. Receipt of Application — investors apply with the application money, which is deposited in a scheduled bank.
Then, C. Letter of Allotment of Shares — once minimum subscription is received, shares are allotted and letters of allotment are sent.
Then, D. Letter of Regret — applicants to whom no shares are allotted are informed by a letter of regret and their money is refunded.
Nothing can be received or allotted before the prospectus is issued, so every order that does not begin with B is wrong.
NCERT (2026-27 edition):
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