The Government has revised the format of prospectus given in Schedule II of the Companies Act, 1956. The revised format has been made effective from 1st Nov. 1991. This hs been done to provide for greater disclosure of intonation regarding the company, its management, the project proposed to be undertaken by the company and the management perception of risk factors so as to enable the investors to take an informed decision regarding investment in shares or debentures offered through public issue. The revised format of prospectus requires the prospectus to be divided into three parts.
In the first part brief particulars are to be given” about matters being mentioned below:
I. General Information. Under this head information is given about:
(i) Name and address of registered once of the company.
(ii) Name(s) of stock exchange(s) when application for listing is made. (ii) Declaration about the issue ammonium subscription of90 percent is not received within 60 days from the date of closure of issue.
(liv) Declaration about. the issue of allotment letters refunds within a period of 10 weeks and interest in case of any delay in refund at the prescribed rate under Section 73 (2) and (2A).(y) Date of opening of the issue. ,
(vi) Date of closing of the issue and date of earliest closing of the issue. (vii) . Names and addresses of auditors and lead managers.
(viii) Whether rating from CRISIL (Credit Rating Information Services of India Limited) or any rating agency has been obtained for the proposed debentures preference shares issue. If no rating has been obtained. this should be answered as ‘No’. If yes. rating should be indicated.
(ix) Names and addresses of the underwriters and the mount underwritten by them and the declaration by the Board of directors that the underwriters have sufficient resource to discharge their respective obligations.
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