Primary Market » Issue of Shares
What is a Prospectus?
A large number of new companies float public issues. While a large number of these companies are genuine, quite a few may want to exploit the investors. Therefore, it is very important that an investor before applying for any issue identifies future potential of a company. A part of the guidelines issued by SEBI (Securities and Exchange Board of India) is the disclosure of information to the public. This disclosure includes information like the reason for raising the money, the way money is proposed to be spent, the return expected on the money etc. This information is in the form of 'Prospectus' which also includes information regarding the size of the issue, the current status of the company, its equity capital, its current and past performance, the promoters, the project, cost of the project, means of financing, product and capacity etc. It also contains lot of mandatory information regarding underwriting and statutory compliances. This helps investors to evaluate short term and long term prospects of the company.
- What does 'Draft Offer document' mean?
- What is an 'Abridged Prospectus'?
- Who prepares the 'Prospectus'/'Offer Documents'?
- What does one mean by 'Lock-in'?
- What is meant by 'Listing of Securities'?
- What is a 'Listing Agreement'?
- What does 'Delisting of securities' mean?
- What is SEBI's Role in an Issue?
- Does it mean that SEBI recommends an issue?
- Does SEBI tag make one's money safe?
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