Prospectus & Allotment of Securities

These rules begin with the definitions necessary for interpreting the provisions and then specify the information, disclosures, and reports that must be included in a prospectus.

They also address the period for which such information must be provided and the process for varying the terms of contracts or objects stated in a prospectus.

The rules further regulate the offer of sale by members, the dematerialisation of securities, and mandate dematerialised issuance by unlisted public companies and private companies in specified situations.

They explain the framework for issuing a shelf prospectus, filing an information memorandum, and the obligations related to refund of application money, return of allotment, and payment of commission.

Additionally, Rule 14 lays out the complete procedure for private placement, including approvals, disclosures, and filing requirements.