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Question -

At which stage in the formation of a company does it interact with SEBI?



Answer -

The stage of capital subscription is that stage where a company needs to interact with Securities and Exchange Board of India (SEBI). The interaction is required because during this phase the company looks to raise capital from public by issuing shares and debentures. For issuing such shares the company has to follow rules set by SEBI, so it becomes essential to obtain approval from SEBI before issuing of shares or moving ahead with capital subscription.

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