1. Prospectus of company
The Companies Act, 2013
PRESENTED BY:-
VEER CHANDRA PRATAP
RAJKIYA ENGINEERING COLLEGE, AZAMGARH
Mechanical Engineering
(3rd year)
Roll no. :- 1907360409006
2. CONTENT
▪ Introduction
▪ Legal requirement of Prospectus
▪ Section 24 (Power of SEBI & transfer of security)
▪ Types of Prospectus
Deemed Prospectus
Shelf Prospectus
Red herring Prospectus
Abridged Prospectus
Rules of public deposits in Prospectus
3. Introdution
▪ According to 2(70),(A document described or issued as prospectus and
includes any notice, circular, advertisement or other document inviting
deposits from the public or inviting deposits from the public for
subscription or purchase of shares or debentures of a company.)
WHICH COMPANIES ARE REQUIRED TO ISSUE
PROSPECTUS:
Every public listed company who intends to offer shares or
debentures of the company to the public.
Every private company who ceases to be a private company and
converts into a public company and intends to offer shares or
debentures of the company to the public.
5. Legal requirement of Prospectus
▪ A Prospectus is required to be issued only after the incorporation of
company.
▪ The prospectus must contain all the particulars, listed in the schedule
II of Companies act.
▪ The prospectus must be dated.
▪ Before a prospectus is issued, a copy of it must be registered with the
registration of companies.
▪ Prospectus shall be issued within ninety days of its registration .
6. SECTION 24 (power of SEBI & transfer of
security)
Authorities to exercise Power related to
Issue &
transfer of
security
Non
payment of
divided
In any other case
By SEBI Central government
7. TYPES OF PROSPECTUS
▪ Section 25 (DEEMED PROSPECTUS)
company Shares allotment or
Agreement to allot securities Issue house
Advt./notice/
documents
PROSPECTUS
8. Section 31(SHELF PROSPECTUS)
Only those company can issue Shelf Prospectus which are specified
in SEBI.
Info memorandum contains charge created/ change in the financial
position of the company.
Shelf Prospectus first fund raising
Second fund raising no information required
Information memorandum required
9. (SECTION 32)RED HERRING PROSPECTUS
It’s a prospectus which does not contain detail about.
The main purpose is to attract public to subscribe securities of the
company.
Quantum & Price
10. (SECTION 33)ABRIDGED PROSPECTUS
Abridged prospectus means a memorandum containing such salient
features of a prospectus as may be specified by SEBI by making
regulation in this behalf. It means that a company cannot issue
application from for purchase of securities unless such from is
accompanied by an abridged prospectus.
It is a summary of PROSPECTUS. It contains salient features of
prospectus.
11. RULES OF PUBLIC DEPOSITE IN PROSPECTUS
▪ No deposit can be invited, without an advertisement specifying the
financial conditions, management structure and other required particulars
of the company.
▪ Declaration as to repayment of the deposit, in accordance with the terms
and condition.
▪ Provision for nomination to be available.
▪ No deposit payable on demand or repayable before three months can be
accepted.
▪ A company cannot accept deposits, repayable after three years.
▪ A company cannot accept deposits beyond 10% of the paid-up capital.
