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 logical sequence of share issue procedure follows this chronological order:

Step 1: The company must first invite the public to subscribe to its shares by issuing a prospectus (A). This document contains all material information about the company and the issue.

Step 2: After the prospectus is issued, prospective investors respond by submitting applications along with application money (C). This is the public's response to the invitation.

Step 3: The company then verifies whether minimum subscription has been received within the stipulated period of 120 days from the date of issue of prospectus (B). This is a mandatory requirement under the Companies Act, 2013.

Step 4: Once allotment decisions are made (after meeting minimum subscription), the company sends letters of allotment to successful applicants and letters of regret to those who didn't receive allotment (D).

The sequence is: (A) → (C) → (B) → (D)

This represents the natural flow: Company invites → Public applies → Company checks minimum subscription → Company communicates allotment decisions.

Correct Option: 2