COMPANY

PROSPECTUS

DEFINATION
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.

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.

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.

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 .

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

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

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 ISSUEi.Objects. ii.Project cost. iii.Means of financing.

 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.

FORMALITIES IN ISSUING COMPANY

PROSPECTUS
Every prospectus issued by or on
behalf of a company must be dated and that
date shall unless the contrary is proved, be
regarded as the date of its publication. (section
55)
A copy of the prospectus signed by
every director or proposed director or by his
agent must be delivered to the registrar on or
before the date of publication. The prospectus
issued to the public should mention that a copy
of the prospectus along with the specified
documents have been filed with the register.

Continued..
A prospectus must not be
issued more than 90 days after
the date on which a copy thereof
is delivered for registration. If a
prospectus is so issued it will be
deemed to be a prospectus a
copy of which has not been
delivered to the registrar.

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A public limited company, 1. which
has not issued a prospectus.2.which has
issued a prospectus, but has not proceeded to
allot any of the shares, offered to the public
for subscription, is required to deliver to
Registrar a statement in lieu of prospectus
for registration, at least three days before the
allotment of shares or debentures.

Continued........
..
Schedule III contains the details of
the particulars to be furnished. In case of
private company becoming a public company,
statement in lieu of the prospectus can be
filed. Schedule IV contains the details of the
particulars to be furnished for the same.
Such a statement is required to be
signed by every person, who is named therein
as a director or a proposed director, of the
company, or by his agent authorized in
writing.

Continued

If allotment of shares or
debentures is made without filing the
statements in lieu of prospectus, the allottee
may avoid it within two months after the
statutory meeting, or where no such meeting
is to be held, within two months of the
allotment. Contravention also renders the
company and every director liable to fine up
to rupees 10,000.

RULES OF PUBLIC DEPOSITS

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.

PRESENTED BY.
FARMAN METKAR
FAIZ KHAN
SHRADDHA KADAM
MRIDUL GROVER
PRANALI PARAB
PALLAVI BODKE

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