Explain the Shelf Prospectus.
The expression shelf prospectus means a prospectus in respect of which the securities or dais of securities included there in are issued for subscription in one or more issues over a certain period without the issue of a further prospectus.
Provisions of the Act
Any class or classes of companies, as the Securities and Exchange Board may provide by regulations in this behalf, may file a shelf prospectus with the Registrar at the stage of the first offer of securities included there in.
The shelf prospectus which shall indicate a period not exceeding one year as the period of validity , of such prospectus which shall commence from the date of opening of the first offer of securities under that prospectus.
In respect of a second or subsequent offer of such securities issued during the period of validity of that prospectus, no further prospectus is required.
A company filing a shelf prospectus shall be required to file an Information Memorandum containing all material facts relating to new charges created, changes in the financial position of the company as have occurred between the first offer of securities or the previous offer of securities and the succeeding offer of securities and such other changes as may be prescribed, with the Registrar within the prescribed time, prior to the., issue of a second or subsequent offer of securities under the shelf prospectus.
Where an Information Memorandum is filed, every time an offer of securities is made, such memorandum together with the shelf prospectus shall be deemed to be a prospectus.