Question

Define Prospectus. What are the legal provisions for the issue of a prospectus.

Answer 1

As per Companies Act 2013, prospectus” means any document described or issued as a prospectus and includes a red-herring prospectus referred to in Section 32 or shelf prospectus referred to in section 31 or any notice, circular, advertisement or other document inviting offers from the public for the subscription or purchase of any securities of a body corporate.

Prospectus are Legal document required compulsorily under the SEBI Act by companies doing public issue of shares.