25 July 2025
A **Shelf Prospectus** is a type of prospectus issued by certain companies (especially financial institutions and banks) to **raise funds multiple times** through securities offerings **without filing a new prospectus each time**.
> A shelf prospectus is a prospectus issued by a company for one or more issues of securities or class of securities as mentioned in that prospectus, **valid for a period of up to 1 year**, and **no new prospectus is required** before each offer.
---
### 📌 **Key Features:**
* Filed **once** with the Registrar of Companies (ROC). * Used for **multiple tranches** of public issues within a year. * Requires filing of an **Information Memorandum** before each issue. * Saves time and cost for frequent issuers.
---
### 📋 **Example:**
Suppose **LIC Housing Finance Ltd** wants to raise ₹5,000 crore through **non-convertible debentures (NCDs)** over the next 12 months.
1. It files a **Shelf Prospectus** in April 2024. 2. It issues ₹1,500 crore in May 2024, ₹2,000 crore in September 2024, and ₹1,500 crore in January 2025. 3. Before each issue, it files an **Information Memorandum** updating investors on the company's financials and any material changes.
---
### 🏛️ Who Can Issue a Shelf Prospectus?
As per SEBI regulations:
* Public financial institutions, * Scheduled banks, * Public sector undertakings (PSUs), * Companies specified by SEBI.
---
Let me know if you want a format/sample of a shelf prospectus or explanation of the information memorandum.
CAclubindia
