prospectus

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types of prospectus and difference between them?
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ADVERTISEMENT OF PROSPECTUS (SECTION 30):

When a company issue an advertisement of prospectus, the advertisement shall specify contents of its memorandum; the objects, the liability of members, amount of share capital, name of signatories, and number of shares subscribed for by these signatories and its capital structure.

Ordinary prospectus:
It is the common form of prospectus issued by any company.

Deemed Prospectus:-
When a company issues its securities to issuing house and the issuing house later on transfers these securities later on to public then the issuing house issues an offer document, this offer document is known as deemed prospectus. 

RED HERRING PROSPECTUS (SECTION 32):

A company may issue a red herring prospectus before the issue of a prospectus.“Red herring prospectus” means a prospectus which does not include complete particulars of the quantum or price of the securities included therein.

Information Memorandum:
It is a document issued by company after issue of Red herring prospectus and after the issue of shelf prospectus. 

Statement in lieu of Prospectus:
Statement in lieu of Prospectus is issue by the company when the company does not issue securities to public. 

SHELF PROSPECTUS (SECTION 31):

Any class of company may file a shelf prospectus with the Registrar of Companies at the stage of first offer of securities.“Shelf prospectus” means a prospectus in respect of which the securities or class of securities included therein are issued for subscripttion in one or more issues over a certain period without the issue of a further prospectus.

Summary or Abridged prospectus:

According to companies act 1956 every application form for purchasing the shares of company must be issued only with a copy of prospectus .  For this  Abridged prospectus issued. 
 


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