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

 

 

Section 32 Red Herring Prospectus - Indian Companies Act 2013

 

As per Section 32 of Indian Companies Act 2013 a Company can issue red herring prospectus subject to certain conditions. Red herring prospectus means a prospectus which does not include complete particulars of the quantum or price of the securities included therein.

 

(1) A company proposing to make an offer of securities may issue a red herring prospectus prior to the issue of a prospectus.


(2) A company proposing to issue a red herring prospectus under sub-section (1) shall file it with the Registrar at least three days prior to the opening of the subscription list and the offer.


(3) A red herring prospectus shall carry the same obligations as are applicable to a prospectus and any variation between the red herring prospectus and a prospectus shall be highlighted as variations in the prospectus.


(4) Upon the closing of the offer of securities under this section, the prospectus stating therein the total capital raised, whether by way of debt or share capital, and the
closing price of the securities and any other details as are not included in the red herring prospectus shall be filed with the Registrar and the Securities and Exchange Board.


Explanation.—For the purposes of this section, the expression "red herring prospectus" means a prospectus which does not include complete particulars of the quantum or price of the securities included therein.

 

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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