The document defines a company prospectus as an essential document issued to inform the public and investors about securities offered by a company, including shares and debentures. It outlines legal requirements, types of prospectus such as abridged, deemed, shelf, and red-herring, and the mandatory contents that must be included. The prospectus serves multiple objectives, including attracting investments, providing detailed company information, and maintaining records while making directors accountable for any misstatements.

1. COMPANY
PROSPECTUS

2. DEFINITION
A document described or issued as prospectus and
includes any notice, circular, advertisement or other document
inviting deposits from the public or inviting the offers from public
for subscription or purchase of shares or debentures of a company.

3. COMPANY PROSPECTUS
• MEANING.
• LEGAL REQUIREMENTS OF PROSPECTUS.
• TYPES OF PROSPECTUS.
• CONTENTS OF PROSPECTUS.
• FORMALITIES IN ISSUING COMPANY PROSPECTUS
• STATEMENT IN LIEU OF A PROSPECTUS.
• RULES OF PUBLIC DEPOSITS.

4. MEANING
Company prospectus is released by company to inform the public and
investors of the various securities that are available. These documents
describe about mutual funds, bonds, stocks and other forms of investments
offered by the company. A prospectus is generally accompanied by basic
performance and financial information about the company.

5. LEGAL REQUIREMENTS 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. Objectives
• It informs the company about the formation of a new company.
• It serves as a written evidence about the terms and conditions of issue of shares
or debentures of a company.
• It induces the investors to invest in the shares and debentures of the company.
• It describes the nature, extent and future prospectus of the company.
• It maintains all authentic records on the issue and make the directors liable for
the misstatement in the prospectus.

7. TYPES OF PROSPECTUS
• ABRIDGED PROSPECTUS.
• DEEMED PROSPECTUS.
• SHELF PROSPECTUS.
• RED HEARING PROSPECTUS.

8. Red-herring prospectus:
• . It is a prospectus which does not contain all particulars on the price and
quantam of securitues offered.
• This type of prospectus is issued to check the demand for securities.
• It is issued at least three days prior to the opening of offer

9. Abridged prospectus
• .It means a memorandum containing salient features of prospectus as prescribed.
• A Copy of the prospectus shall, on a request being made by any person before the
closing of the subscription list and the offer, be furnished to him.
• If a company makes any default in complying with the above provisions, it shall
be liable with a penalty of fifty thousand rupees for each default

10. Deemed prospectus
• In this type of Prospectus offer of sale of shares or debentures are made
through Issue houses.
• The company makes an agreement with the issue house, Its the issue house that
advertises.
• Any document which offers the sale of securities to the public is deemed to be
a prospectus by implication of law.

11. SHELF PROSPECTUS.
• It is issued by any financial instituation or bank for one or more issue of securities,
in one specified prospectus.
• Shelf prospectus shall be valid for 1 year from the date of opening of the first
offering of the prospectus.
• The company shall not required to file fresh prospectus with the registrar at every
stage of offer of securities but has to submit information memorandum Information
• Memorandum contains all important information and the changes made if any.

12. CONTENTS OF A PROSPECTUS
• GENERAL INFORMATION –
• It contains
• (i)Name and address of registered office of company.
(ii)Name of stock exchange where application for listing is made.
(iii)Date of opening of the issue.
(iv)Date of closing of the issue.
(v)Name and address of companies manager and managing directors

13. • CAPITAL STRUCTURE OF COMPANY---
i. Authorized, issued, subscribed, and paid-up capital.
ii.Size of the present issue giving separately reservation for preferential
allotments to promoters and others.
• PARTICULARS OF THE ISSUE-
i.Objects.
ii.Project cost.
iii.Means of financing.

14. • OUTSTANDING LITIGATION –
Relating to financial matters or criminal proceedings
against the company or directors under Schedule XIII.
• CERTAIN PRESCRIBED PARTICULARS-
In regard to the company and other listed companies under the
same management, which made any capital issue during the last 3
years.