Shelf and red herring prospectus

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pooja bansal

pooja bansal (Querist)
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05 May 2015 plz someone explain shelf and red herring prospectus in very simple language....

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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06 May 2015 Red herring Prospectus is a prospectus which does not include complete particulars of the quantum or price of the securities included therein. In simple terms a red herring prospectus contains most of the information pertaining to the company’s operations and prospects, but does not include key details of the issue such as its price and the number of shares offered.

Shelf Prospectus is a prospectus in respect of which the securities or class of securities included therein are issued for subscription in one or more issues over a certain period without the issue of a further prospectus. In simple terms Shelf Prospectus is a single prospectus for multiple public. Issuer is permitted to offer and sell securities to the public without a separate prospectus for each act of offering for a certain period.

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