Explain the following concept:

Shelf Prospectus

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1 Answers

  • The company instead of preparing a fresh prospectus for every issue prepares a shelf prospectus.
  • Shelf Prospectus can be used for all issues made by the company for up to one year.
  • An Information Memorandum has to be filed with ROC every time during the validity period of one year of the shelf prospectus.
  • Information Memorandum contains latest material facts such as new charges, changes in financial position, etc.

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