Question

Answer in brief:
State the statutory requirements in relation to Prospectus.

Answer 1

The statutory requirements in relation to Prospectus :
(1) Availability to the public: Draft Prospectus to be made available to the public. The draft prospectus filed with the Securities Exchange Board of India (SEBI) should be made available to the public as well as to the Stock Exchanges where the company wants to list its shares and other securities.
(2) Signed by the Directors: Prospectus must be signed by all the directors or by the duly authorised attorney.
(3) Registration of Prospectus: The copy of the prospectus should be filed With the Registrar of Companies (ROC) before it is issued to the public.
(4) Dating of Prospectus: Prospectus must be dated. The date of publication of the prospectus is to be mentioned on the prospectus.
(5) Issuing prospectus to the public: The prospectus should be issued to the public within 90 days from the date of registering a copy with the Registrar of Companies (ROC).