Explain the following concept: Red Herring Prospectus
Explain the following concept:
Red Herring Prospectus
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- A red herring prospectus is a kind of incomplete prospectus as it does not include complete particulars of the quantity/price of the securities.
- It is usually issued at the time of IPO (Initial Public Offer).
- A red herring prospectus shall have the same obligations that are applicable to the prospectus.
- A company must file a Red Herring Prospectus with ROC at least 3 days prior to the opening of the subscription list and the offer.
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