Knowledge update- What is the difference between offer document, abridged prospectus, letter of offer, and placement document. “Offer document” means Prospectus in case of a public issue or offer for sale and Letter of Offer in case of a rights issue which is filed Registrar of Companies (ROC) and Stock Exchanges. An offer document covers all the relevant information to help an investor to make his/her investment decision. “Abridged Prospectus” means the memorandum as prescribed in Form 2A under subsection (3) of section 56 of the Companies Act, 1956. It contains all the salient features of a prospectus. It accompanies the application form of public issues. “Letter of offer” means the offer document prepared by company for its rights issue and which is filed with the Stock Exchanges. The letter of offer contains all the disclosures as required in term of SEBI(DIP) guidelines and enable shareholder in making an informed decision. “Placement Document” means document prepared by Merchant Banker for the purpose of Qualified Institutions placement and contains all the relevant and material disclosures to enable QIBs to make an informed decision. informed decision.
Posted on: Tue, 26 Nov 2013 07:47:03 +0000
Trending Topics
© 2015