Advertisement of Prospectus :

Comprehensive rules and regulations have been incorporated in the Companies Act, 2013 in respect of this basic document which is the only source for the investors to ascertain the soundness or otherwise of the company. Since the prospectus is intended to save the investing public from victimisation, the Legislature has aimed at securing the fullest disclosure of all material and essential particulars and laying the same before all the prospective buyers of shares.

Section 30 of the Companies Act, 2013 seeks to provide for an advertisement of any prospectus of a company to be published. Section provides that where an advertisement of any prospectus of a company is published, it shall specify therein-

– the contents of its memorandum as regards the objects, the liability of members and the amount of share capital of the company, and

– the names of the signatories to the memorandum and the number of shares subscribed for by them, and

– its capital structure.