Vetting by SEBI / Stock Exchanges
a) A company cannot come out with public issue unless draft prospectus is filed with SEBI.
b) A company cannot file prospectus directly with SEBI. It has to be filed through a merchant banker. After the preparation of prospectus, the merchant banker along with the due diligence certificate and other compliances sends the same to SEBI for vetting.
c) SEBI on receiving the same, scrutinizes it and may suggest changes within 21 days of receipt of prospectus.( Earlier, the situation was that the company was required to obtain Acknowledgement Card from SEBI)
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