Types of Prospectus | Red Herring Prospectus | Shelf Prospectus | Abridged & Deemed Prospectus

🔴 Prospectuses are documents that companies use to offer securities to the public, and they come in several forms. According to the Companies Act 2013, there are four main types: red herring, shelf, abridged, and deemed prospectuses. Each type serves a different purpose and has specific requirements.

🔴 1. Red Herring Prospectus:
🗣️ This is a preliminary prospectus used during the book-building process for an initial public offering (IPO).
🗣️ It doesn't specify the exact price or quantity of shares being offered.
🗣️ The red herring prospectus is filed with the Registrar of Companies (ROC) but before the final price is set.

🔴 2. Shelf Prospectus:
🗣️ This allows a company to issue securities multiple times over a period without filing a new prospectus each time.
🗣️ It is valid for a year, and the company can make offers as needed within that timeframe.
🗣️ This is particularly useful for companies issuing bonds or other debt securities.

🔴 3. Abridged Prospectus:
🗣️ This is a shorter version of the full prospectus, highlighting key information for investors.
🗣️ It includes all essential details but in a more concise format.
🗣️ Abridged prospectuses are required by the Securities and Exchange Board of India (SEBI) and are often used for IPOs and follow-on public offerings.

🔴 4. Deemed Prospectus:
🗣️ This is a document that, while not technically a prospectus, is treated as one for regulatory purposes.
🗣️ It is typically used when a company issues securities through intermediaries like merchant banks or stockbrokers.
🗣️ A deemed prospectus allows companies to avoid filing a full prospectus directly with SEBI while still complying with disclosure requirements.

========================================

🔴 This video might be useful for students preparing for -
🗣️ 11th Commerce #11thcommerce
🗣️ 12th commerce boards #12thcommerce
🗣️ CSEET(CS FOUNDATION ICSI) #cseet
🗣️ CA Foundation #cafoundation
🗣️ UGC NET COMMERCE #ugcnetcommerce
🗣️ LLB #llb
🗣️ UGC NET LAW #ugcnetlaw

========================================

🔴 In this video - #padhakulog
Teacher's Name - CS Payal Popli
Topic - Types of Prospectus

===============================================
🫵🏻 Connect with us-
🗣️Instagram- https://instagram.com/padhaku_log?igshid=16luafh5weq49
🗣️Facebook- https://www.facebook.com/Padhaku-Log-101091301476679/
🗣️Watsapp-9630227777
🗣️Telegram-9630227777
===============================================

❤️About us:
Padhaku Log is a platform specially created for those students who live in remote areas and don’t have access to fancy coaching classes. A channel which wants to bring parity in knowledge level of all.

Видео Types of Prospectus | Red Herring Prospectus | Shelf Prospectus | Abridged & Deemed Prospectus канала Padhaku Log