Red herring prospectus.
Section 32 of Companies Act 2013
1. A company proposing to make an offer of securities may issue a red herring prospectus prior to the issue of a prospectus.
2. A company proposing to issue a red herring prospectus under sub-section (1) shall file it with the Registrar at least three days prior to the opening of the subscription list and the offer.
3. A red herring prospectus shall carry the same obligations as are applicable to a prospectus and any variation between the red herring prospectus and a prospectus shall be highlighted as variations in the prospectus.
4. Upon the closing of the offer of securities under this section, the prospectus stating therein the total capital raised, whether by way of debt or share capital, and the closing price of the securities and any other details as are not included in the red herring prospectus shall be filed with the Registrar and the Securities and Exchange Board.
Explanation.—For the purposes of this section, the expression "red herring prospectus" means a prospectus which does not include complete particulars of the quantum or price of the securities included therein.
· This sectionshall come into force from September 12, 2013.
· It seeks toprovide for issue of red-herring prospectus prior to issue of a prospectus.
· A companyproposing to issue a red herring prospectus shall file it with Registrar atleast three days prior to the opening of the subscription list and the offer.Upon closing of the offer of securities, the details of information to be filedwith the Registrar and SEBI.