BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -In case of a public limited company the share capital has to be raised from the public. This involves the following: (a) Preparation of a draft prospectus and get it inspected (vetted) by SEBI to ensure that all information given in the prospectus fully complies with the guidelines laid down by SEBI in this regard.

Detailed explanation-2: -A public company has to issue a prospectus which is an invitation to the public to subscribe to the capital of the company. It is done for raising the required funds from the public.

Detailed explanation-3: -Prospectus is to be issued within ninety days from the date of delivery of prospectus to the Registrar. No prospectus shall be valid if it is issued more than ninety days after the date on which a copy thereof is delivered to the Registrar.

Detailed explanation-4: -A document issued by a company to invite the public and the investors for subscribing the securities is called a prospectus. The prospectus contains detailed information on the securities. A public company can issue the prospectus to offer its shares and debentures, whereas a private company cannot issue prospectus.

Detailed explanation-5: -It is not necessary for every company to file a prospectus. A statement in lieu of prospectus is filed with the Registrar of Companies Act instead of Articles of Association. Private companies are not required to file a prospectus.