The correct sequence of the procedure for share issue, forfeiture, and reissue is as follows:

1. C. Issue of prospectus (This is the initial step where the company issues a prospectus to invite applications for shares.)
2. A. Receipt of Applications (After the issue of the prospectus, the company receives applications from potential shareholders.)
3. B. Allotment of shares (Once the applications are received, the company decides how many shares to allot to each applicant.)
4. D. Forfeiture of shares (If shareholders fail to pay the allotment or call money, the shares may be forfeited.)
5. E. Reissue of shares (After forfeiture, the company may reissue the forfeited shares to new shareholders.)

So, the correct sequence is:

3. C, A, B, D, E