9 Important Requirements for the Issue of a Valid Prospectus (Companies Act, 1956)
Issue of prospectus, in order to be valid, must satisfy the following legal requirements: 1. Obligations of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009: These regulations inter-alia deal with appointment of Lead Merchant Banker, Bankers to the issue, Registrar to the issue, filing of various documents along with a draft prospectus, pricing of the securities, promoters contribution, minimum public offer, and disclosure in the offer document.The company is required to file a draft offer document through the lead merchant banker to the SEBI, at least 30 days prior to registering the prospectus with the Registrar of Companies. 2. It must be dated: ADVERTISEMENTS: Every prospectus must be dated. The date given in the prospectus shall be taken to be the date of its publication unless proved to the…