Red herring prospectus :

The expression “red herring prospectus” means a prospectus which does not include complete particulars of the quantum or price of the securities included therein.

The law relating to the red herring prospectus given under section 32 is as follows:

(1) Issue of red herring prospectus prior to prospectus: Company proposing to make an offer of securities may issue a red herring prospectus prior to the issue of a prospectus.

(2) Filing with the registrar: A company proposing to issue a red herring prospectus shall file it with the Registrar at least three days prior to the opening of the subscription list and the offer.

(3) Obligation and any variation in the red herring prospectus is same as that of prospectus: A red herring prospectus shall carry the same obligations as are applicable to a prospectus and any variation between the red herring prospectus and a prospectus shall be highlighted as variations in the prospectus.

(4) Prospectus with the details not included in the red herring prospectus: Upon the closing of the offer of securities under this section, the prospectus stating therein the total capital raised, whether by way of debt or share capital, and the closing price of the securities and any other details as are not included in the red herring prospectus shall be filed with the Registrar and the Securities and Exchange Board.