Prospectus- A prospectus is basically a formal and legal document issued by a body corporate which acts for inviting offers from the public for subscription or purchase of any securities. Every public company is entitled to issue the prospectus for its shares or debentures.

Contents of a prospectus:

1. Address of the registered office of the company.

2. Name and address of company secretary, auditors, bankers, underwriters etc.

3. Dates of the opening and closing of the issue.

4. Declaration about the issue of allotment letters and refunds within the prescribed time.

5. A statement by the board of directors about the separate bank account where all monies received out of shares issued are to be transferred.

6. Details about underwriting of the issue.

7. Consent of directors, auditors, bankers to the issue, expert’s opinion if any. 

8. The authority for the issue and the details of the resolution passed therefore. 

9. Procedure and time schedule for allotment and issue of securities. 

10. Capital structure of the company. 

11. Main objects and present business of the company and its location. 

12. Main object of public offer and terms of the present issue.