what is Shelf Prospectus – companies act 2013 cs notes
Shelf Prospectus- According to section 31 of the Companies Act, 2013, any class or classes of companies as prescribed by the Securities and Exchange Board of India may file a shelf prospectus with the registrar of companies at the stage of the first offer of securities for a period of one year.
No further issue of prospectus is required in respect of a second or subsequent offer of securities included in such prospectus for a period of 1 year.
Company shall also file information memorandum on new charges created, of any change in the financial position with the registrar of companies prior to the issue of a second or subsequent offer under shelf prospectus.
Where a company or any other person has received applications for the allotment of securities along with advance payments of subscription before the making of any such change, the company or other person shall intimate the changes to such applicants.
Where an information memorandum is filed, every time an offer of securities is made with all the material facts with the registrar, such memorandum together with the shelf prospectus shall be deemed to be a prospectus.