Prospectus is defined as any document described or issued as a prospectus and includes any notice, circular, advertisement or other document inviting deposits from the public or inviting offers from the public for the SUBSCRIPTION or purchase of any shares in, or debentures of a body corporate.

Following are the LEGAL requirements of a prospectus:

• It is to be issued after the incorporation of the company.
• It must contain all the particulars listed in schedule II to the Companies Act.
• It must be dated.
• It must be signed by every person mentioned therein as a director or a PROPOSED director.
• Every application form for shares, issued by the company must be accompanied by a copy of the prospectus.
• A statement relating to a company by an expert can be included in the prospectus.
• Deposits should be invited after issuing an advertisement.
• No prospectus can be issued more than 90 days after a copy of it is filed for registration.
• Penalty for NON compliance of any ot the above rules shall be punishable with FINE which may exten to Rs. 5000.

Prospectus is defined as any document described or issued as a prospectus and includes any notice, circular, advertisement or other document inviting deposits from the public or inviting offers from the public for the subscription or purchase of any shares in, or debentures of a body corporate.

Following are the legal requirements of a prospectus: