Prospectus

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Jimi KR (Querist)
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01 December 2012 Whether an E-mail invitation to subscribe shares/debentures of a public Company can be considered as Prospectus?

V K Bajaj

V K Bajaj (Expert)
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03 December 2012 NO

NEVER

Email procedure shall be taken as PRIVATE route and not a public.

The public item shall be done publically.

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GJCo

GJCo (Expert)
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04 December 2012 Also, as per the Companies(Acceptance of Deposits) Rules, the company has to advertise in a daily English newspaper and a vernacular newspaper.

Sec. 2(36) of the Companies Act, 1956:
Prospectus means any document described or issued as a prospectus and includes any notice, circular or advertisement or OTHER DOCUMENT inviting deposits from public for the subscription of purchase of any shares in or debentures of any body corporate.

Sec. 4 of the Information Technology Act, 2008 (Legal recognition of electronic records):
WHERE ANY LAW PROVIDES that information or any other matter shall be in writing or in typewritten form, then not withstanding anything contained in such law, such requirement shall be deemed to be satisfied if such information or matter is
a) rendered or made available in electronic form AND
b) accessible so as to be useable for a subsequent reference.

Now, if we read the above two sections, OTHER DOCUMENTS may include e-mail. But nothing such is provided in the Companies Act read with the Information Technology Act. Hence, you cannot send e-mail.

I also agree with Mr. Bajaj.

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