Document containing offer of securities for sale to be deemed prospectus? Section 25 of Indian Companies Act 2013

 

 

Section 25 Document containing offer of securities to be deemed prospectus - Indian Companies Act 2013

 

As per Section 25 of Indian Companies Act 2013 all documents containing offer of sale of securities for sale to be deemed prospectus? Provision in the Indian Companies Act 2013 regarding Prospectus and deemed prospectus is as under.

 

(1) Where a company allots or agrees to allot any securities of the company with a view to all or any of those securities being offered for sale to the public, any document by which the offer for sale to the public is made shall, for all purposes, be deemed to be a prospectus issued by the company; and all enactments and rules of law as to the contents of prospectus and as to liability in respect of mis-statements, in and omissions from, prospectus, or otherwise relating to prospectus, shall apply with the modifications specified in subsections (3) and (4) and shall have effect accordingly, as if the securities had been offered to the public for subscription and as if persons accepting the offer in respect of any securities were subscribers for those securities, but without prejudice to the liability, if any, of the persons by whom the offer is made in respect of mis-statements contained in the document or otherwise in respect thereof.


(2) For the purposes of this Act, it shall, unless the contrary is proved, be evidence that an allotment of, or an agreement to allot, securities was made with a view to the securities being offered for sale to the public if it is shown—


(a) that an offer of the securities or of any of them for sale to the public was made within six months after the allotment or agreement to allot; or


(b) that at the date when the offer was made, the whole consideration to be received by the company in respect of the securities had not been received by it.


(3) Section 26 as applied by this section shall have effect as if —


(i) it required a prospectus to state in addition to the matters required by that section to be stated in a prospectus—


(a) the net amount of the consideration received or to be received by the company in respect of the securities to which the offer relates; and


(b) the time and place at which the contract where under the said securities have been or are to be allotted may be inspected;


(ii) the persons making the offer were persons named in a prospectus as directors of a company.


(4) Where a person making an offer to which this section relates is a company or a firm, it shall be sufficient if the document referred to in sub-section (1) is signed on behalf of the company or firm by two directors of the company or by not less than one-half of the partners in the firm, as the case may be.

 

Section 21 to 40 of Indian Companies Act 2013

How to authenticate documents, proceedings and contracts of a Company? Section 21 of Indian Companies Act 2013

How to execute bills of exchange etc? Section 22 of Indian Companies Act 2013

What are the methods to issue securities by Companies? Section 23 of Indian Companies Act 2013 - Public offer and Private Placement

What are the Powers of Securities and Exchange Board (S E B I) to regulate, issue and transfer of securities? Section 24 of Indian Companies Act 2013

Document containing offer of securities for sale to be deemed prospectus? Section 25 of Indian Companies Act 2013

What are the matters to be stated in Prospectus? Section 26 of Indian Companies Act 2013. Contents of Prospectus. What is the provision for punishment against violation of law regarding issue of Prospectus?

What is the effect of variation in terms of contract or objects in prospectus? Section 27 of Indian Companies Act 2013

Can members of a company offer shares for sale? Section 28 of Indian Companies Act 2013 - offer of sale of shares by certain members of the Company

Public offer of securities should be in dematerialized form. Section 29 of Indian Companies Act 2013

What are the methods to advertise Prospectus? What are the conditions? Section 30 of Indian Companies Act 2013

What is Shelf Prospectus? Who can file prepare and file it? What are the conditions? Section 31 of Indian Companies Act 2013

What is Red Herring Prospectus? Who can issue red herring prospectus? What are the terms? Section 32 of Indian Companies Act 2013

How to issue Application forms for Securities? What is the procedure? Section 33 of Indian Companies Act 2013

What is the criminal liability for mis statement in Prospectus? What is the punishment? Section 34 of Indian Companies Act 2013

What is the Civil liability for mis statement in the Prospectus? Who is punishable? Section 35 of Indian Companies Act 2013

What is the punishment for fraudulently inducing persons to invest money? Section 36 of Indian Companies Act 2013

How can the affected persons act against company for mis leading statements? Section 37 of Indian Companies Act 2013

What is the punishment for personation etc of securities? Section 38 of Indian Companies Act 2013

How to allot securities by Company? What the is process? Section 39 of Indian Companies Act 2013

How to dealt with Securities? Is it necessary to deal with Stock Exchanges? Section 40 of Indian Companies Act 2013. What is the punishment for violation?

 

 

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