Prospectus

Others 518 views 1 replies

Kavitha

210 Points Joined October 2010

Dear Friends,

Is it compulsory for a public Company to issue prospectus whenever it needs funds?

Can the public Company arrange the funds within its group?

If public Company is going for rights issue, then also it needs to issue prospectus?

Regards,

Kavitha.

Replies (1)

Guest

1. No, the Prospectus is required to issue when there is Fresh issue of shares, for secendory issues it has to file a statement in lieu of Prospectus.

2. No, the public company has some restriction for intercorporate funding Refer Section 372A of companies act 1956.

3. No. the right issue is offer to existing shareholders, so there is no need to issue prospectus.

Thanks