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The issue of application forms for securities is a critical aspect of the prospectus and allotment of securities in the capital market. It involves the formal invitation to potential investors to subscribe to a company’s securities, be it shares or debentures, as part of an Initial Public Offering (IPO) or subsequent issuance. This article delves […]

A Red Herring Prospectus (RHP) is a preliminary legal document used by companies before they issue an Initial Public Offering (IPO). It provides essential details about the business, its financial status, and the potential risks associated with investment in the securities offered. Unlike a final prospectus, the RHP lacks details like the issue price and

A Shelf Prospectus is a unique type of prospectus that enables companies to issue securities multiple times without filing a new prospectus for each offering. This article provides a detailed analysis of shelf prospectuses under the Companies Act, 2013, covering related sections, regulatory requirements, and the advantages of using a shelf prospectus. Additionally, it explores

The advertisement of a prospectus is an essential part of raising capital through public offerings. It serves as the initial communication to potential investors, generating interest in the securities on offer and providing key details about the company and the offer. However, to protect investors, these advertisements are highly regulated under the Companies Act, 2013

The concept of securities in a dematerialized (demat) form has revolutionized the way public offers and transactions in the securities market are conducted. A dematerialized form of securities eliminates the need for physical certificates, ensuring safer, faster, and more transparent handling of securities. Under the Prospectus and Allotment of Securities section in the Companies Act,

The concept of “Offer of Sale of Shares by Certain Members of Company” is a key provision under the Prospectus and Allotment of Securities section in the Companies Act, 2013. This article explores the key aspects, legal provisions, compliance requirements, and benefits associated with the sale of shares by certain members in a company. Additionally,

In corporate finance, a prospectus serves as a legally binding document that outlines a company’s purpose, goals, and contractual obligations when issuing securities to the public. The Companies Act, 2013, imposes stringent regulations on the use of funds raised through public offerings, mandating that the terms of the contract and the stated objects within the

A prospectus is a critical document in the corporate world, especially for companies planning to raise funds from the public. It serves as an official statement, providing prospective investors with essential information about the company, its business model, financials, risks, and the securities being offered. Under the Companies Act, 2013, there are stringent requirements for

The issuance and transfer of securities are fundamental activities in any corporation, particularly those looking to raise capital through the public markets. Under the Companies Act, 2013, the term “prospectus” is critical, as it sets the guidelines for how companies present their offers to the public. Section 25 of the Companies Act, 2013 addresses an

The Securities and Exchange Board of India (SEBI) holds a significant mandate in India’s capital markets, with a central role in regulating the issue and transfer of securities. Created to protect investor interests and maintain orderly markets, SEBI is empowered by the Companies Act, 2013 and its own regulations to oversee a range of activities