RED- HERRING PROSPECTUS

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MEANING

RED HERRING PROSPECTUS MEANS A PROSPECTUS WHICH DOES NOT INCLUDE COMPLETE PARTICULARS OF THE QUANTUM OR PRICE OF THE SECURITIES INCLUDED THEREIN.


PROVISIONS OF SECTION 32, OF THE COMPANIES ACT , 2013


  • WHO CAN ISSUE RHP- A COMPANY PROPOSING TO MAKE AN OFFER OF SECURITIES MAY ISSUE A RED HERRING PROSPECTUS PRIOR TO THE ISSUE OF A PROSPECTUS.
  • FILLING WITH ROC- A COMPANY PROPOSING TO ISSUE A RED HERRING PROSPECTUS SHALL FILE IT WITH THE REGISTRAR ATLEAST THREE DAYS PRIOR TO THE OPENING OF SUBSCRIPTION LIST AND THE OFFER.
  • OBLIGATIONS- A RED HERRING PROSPECTUS SHALL CARRY THE SAME OBLIGATIONS AS ARE APPLICABLE TO A PROSPECTUS . ANY VARIATION BETWEEN RED HERRING PROSPECTUS AND A PROSPECTUS  SHALL BE HIGHLIGHTED AS VARIATIONS IN THE PROSPECTUS
  • FILLING WITH ROC AND SEBI UPON CLOSING OF OFFER- UPON CLOSING OF THE OFFER OF SECURITIES, 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 RED HERRING PROSPECTUS SHALL BE FILLED WITH THE REGISTRAR AND SEBI.
FEATURES OF R. H. P



  1. RED HERRING PROSPECTUS IS SISSUED DURING BOOK BUILDING PROCESS.
  2. IT CONTAINS EITHER FLOOR PRICE OF SECURITIES OFFERED OR A PRICE BAND ALONG WITH THE RANGE WITHIN WHICH THE BIDS CAN MOVE.
  3. THE APPLICANTS BID FOR THE SHARES QUOTING THE PRICES AND THE QUANTITY THAT THEY WOULD LIKE TO BID AT.
  4. SEBI(ICDR) REGULATIONS PRESCRIBES CERTAIN DISCLOSURES TO BE MADE IN THE RED HERRING PROSPECTUS.

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