Shelf prospectus

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KAILASH NATH PANDEY

KAILASH NATH PANDEY (Querist)
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28 April 2014 What is shelf prospectus..? example.

KAILASH NATH PANDEY

KAILASH NATH PANDEY (Querist)
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28 April 2014 define shelf prospectus with a case... .

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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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**.

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### ✅ **Definition (As per Companies Act, 2013 - Section 31):**

> 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.

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### 📌 **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.

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### 📋 **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.

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### 🏛️ Who Can Issue a Shelf Prospectus?

As per SEBI regulations:

* Public financial institutions,
* Scheduled banks,
* Public sector undertakings (PSUs),
* Companies specified by SEBI.

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Let me know if you want a format/sample of a shelf prospectus or explanation of the information memorandum.

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