A public company making an issue of securities may circulate information Memorandum to the public prior to filing a prospectus. [Subsection (1)]
A company inviting subscription by an information Memorandum shall be bound to file a prospectus prior to the opening of the subscription lists as a Red-herring Prospectus, at least three days before the opening of the offer. [Sub-section (2)]
The information Memorandum and Red-herring Prospectus shall carry same obligation as are applicable in the case of a prospectus [Sub-section (3)]
Requirements relating to filing of final prospectus:
Upon the closing of the offer of securities, a final prospectus stating therein the total capital raised and the closing price of the securities and any other details as were not complete in the Red-herring Prospectus shall be filed in case of a listed company with the SEBI and Registrar of Companies, and in any other case with the Registrar of Companies only [Sub-section (9)]
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