As per Section 32 of Indian Companies Act 2013 a Company can issue red herring prospectus subject to certain conditions. Red herring prospectus means a prospectus which does not include complete particulars of the quantum or price of the securities included therein.
(1) A company proposing to make an offer of securities may issue a
red herring prospectus prior to the issue of a prospectus.
(2) A company proposing to issue a red herring prospectus under
sub-section (1) shall file it with the Registrar at least three days
prior to the opening of the subscription list and the offer.
(3) 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) 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.
Explanation.-- For the purposes of this section, the expression "red
herring prospectus" means a prospectus which does not include
complete particulars of the quantum or price of the securities
included therein.
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