Companies Act India

Ans: In the case of Pramatha Nath Sanyal C. Kali kumar Dutt, the company gave an advertisement about the remaining shares of company in newspaper. The court held that the advertisement of newspaper will also be considered as prospectus. The company will have to mention about itself in the prospectus i.e. working areas of company, litigation on company if any,  etc.

Ans:  The prospectus is a document and it can be a circular or advertisement or anything that is issued to raise funds from public at large and not from existing shareholders is known as prospectus.

Ans: Prospectus is an invitation to offer and not a general offer. First of all,  the prospectus is filed in SEBI by public company. It is that public company of which public issue i.e., IPO or FPO is about to come. A Follow-On Public Offer (FPO) is a type of public offering in which a company which is already listed on the stock exchange issues new shares of its stock to the public. The companies that have already raised funds through IPOs by issuing their shares for the first time can also issue additional shares through FPOs.

Ans: A prospectus is a document through which a public company raises the fund. Prospectus is mentioned under section 2(70) of Companies Act, 2013. Public company is mentioned under section 2(71) of Companies Act,  2013. The promoters of company have significant role in creating the prospectus. Promoters are mentioned under section 2(69) of Companies Act, 2013. If the public company would like to raise fund , the public company can raise the fund through prospectus.