According to section 2(1) of the companies (amendment) Act, 2000 “Abridged prospectus means a memorandum containing such salient features of prospectus as may be prescribed.” As per the companies Act, the company was allowed to furnish an abridged form of prospectus alongwith the application for shares/debenture of information to the prospective investors, the government has revised the format of abridged prospectus so as to help them to take a correct decision regarding investment in shares and debentures.
The same printed number should be bearded by the abridged prospectus (in form 2A) and the shares application form. The investor may release the share application form along with the perforated line after he had an opportunity to study the contents of the abridged prospectus before submitting the same to the company.
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