Filing of Offer Document

In case of public issue of securities by any company is well as any time of securities by a listed company through a rights issue in excess of Rs 50 lakh, a draft prospectus should be filed with the SEBI through an eligible registered merchant banker, at least 21 days prior to filing it with the Registrar of Companies (ROCs). Although under no obligation to do so, if the SEBI specifies any changes in the draft prospectus within 21 days, the issuer fed merchant hanker should carry them out before filing. However, companies prohibited under any order/direction of the SEBI from accessing the capital market cannot issue any security.

The companies intending to issue securities to public, issue should apply for listing them in the stock exchanges. Moreover, all the issuing companies must (i) enter into an agreement with a depository registered with the SEBI under the SEBI Depositories and Participants Regulation, 1996, for internationalization of securities already issued/securities proposed to be issued to the public/ existing shareholders and (ii) give an option to subscribers/shareholders/investors to receive security certificates or hold securities in a internationalized form with a depository. The eligibility norms for issue of equity shares and convertible securities relate to (a) unlisted companies and (b) listed companies.

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