The important steps in the procedure of share issue are:

(A) The company issues the prospectus to the public.

(B) The company has to get minimum subscription within 120 days from the date of the issue of the prospectus.

(C) The prospective investors intending to subscribe the share capital of the company would make an application along with the application money

(D) Letters of allotment are sent to those whom the shares have been alloted, and letters of regret to those to whom no allotment has been made.

Choose the correct sequence of steps from the options given below:

The correct option/sequence is (A), (C), (B), (D).

To understand why this is the correct sequence, let us look at the logical flow of the share issue procedure step-by-step:

Step 1: (A) The company issues the prospectus to the public.
Before any shares can be purchased by the public, the company must invite them to subscribe. This is done by issuing a prospectus, which contains details about the company, its projects, and the terms of the share issue. Therefore, issuing the prospectus is the first step in the procedure.

Step 2: (C) The prospective investors intending to subscribe the share capital of the company would make an application along with the application money.
Once the prospectus is public, interested investors apply for the shares by filling out an application form and sending it along with the required application money. This is the direct response of the public to the prospectus.

Step 3: (B) The company has to get minimum subscription within 120 days from the date of the issue of the prospectus.
After applications start coming in, the company must wait and ensure that it receives a minimum subscription (usually 90% of the issued amount) to proceed. Under the relevant provisions, this minimum subscription must be achieved within 120 days from the date the prospectus was issued.

Step 4: (D) Letters of allotment are sent to those whom the shares have been allotted, and letters of regret to those to whom no allotment has been made.
Once the minimum subscription condition is successfully met, the company's board of directors proceeds to allot the shares. Letters of allotment are dispatched to the successful applicants, while letters of regret, along with the refund of application money, are sent to those who did not receive any allotment.

Combining these steps in chronological order, we get the sequence: (A) → (C) → (B) → (D).