According to the latest Governrnent Guidelines Foml or lodged separately , StaterrTents made about

According to the latest Governrnent Guidelines; it must also be print d in every prospectus and in every application fonn for shares issued by the Amy that An applicant should submit only one application (and not more than one) for the total nnrmber of shares requited Applications may be n ade in single or jOlllt names (not Snore than three). Two or more applications an single andor joint names will be deemed to be multiple applications if the sole andor the fast appiis ant is one and the same. The Board of Directors rosettes the right to reject in its absolute discretion all or any nntluplc applications In case of applications trotter power of Attorney or by limited companies or Corporate bodies the relevant Power of Attorney or the relends authority: as the case rnagbe, or a duly certified copy thereof, nmst be attached tat the Appliratian Foml or lodged separately a the of Lice of the Registrars to the Issne."
Addffinnai Fartrb it is to be remembered that in addition to the above statutory list of contents of a prospectus, the authors of a prospectus are free to give any such additional facts which may influence the judgment of the prospect ve investors. For example, a mention may be made of the favourable location of the factory; special facilities granted by the Central Gavernment and future prospects of the company
SEBI BUIDEUNES FOR CAPITAL ISSUE ADVERTISEMENT
I An issue advertisement shall be truthful, fair and clear and shall rat contain arty rlaterner.t whidl is untrue or misleading
2. An issue advertise lent shall be considered to be misleading if it coJLain5
(i) . StaterrTents made about the performance or activi in the absence of necessary explanataiy or qualifying staternen which may give an exaggerated picture of the performance or tivitie . rtran what it really is.
(ilk An iriacewafeportrayal of
• trtan;r which implies titat past gains or income it 111 be Rena d in the future. '
3. As investors nrav not be well versed in lewd or fill tom Are should be taken trrensme that the advancer is ret feet
INCORPORATION OF A COMPANY i 109
concise and understandable language. Extensive use of technical legal It obgy or complex language and the inclusion of excessive deta Is NN hich maw detract the investor should be avoided
issue advertisement shall not contain statements which promise or guarantee an appreciation or rapid profits
5 An issue advertisement shall not contain any information.or language that is not contained in the offer docunnent.
- 6. All issue advertisements in Newspapers, Magazines, brochures, pamphlets containing highlights relating to any issue should also contain Ash- factors with the same print size. It should mention the names of Lead Managers, Registrars to the Issue.
7. No corporate advertisement except product advertisements shall be issued between the date of opening and closing of subscription of any public issue. Such product advertisement shall not make any reference directly or indirectly to performance of the company during the said period. :
8. No advertisement shall be issued stating that the issue has been fully subscribed or oversubscribed during the period the issue is open for subscription, except to the effect that the issue is open or closed. No amnouncement regarding closure of the issue shall be made except on the last closing date. If the issue is fully subscribed before the last closing date as stated in the prospectus, the announcement should be made only after the issue is fully subscribed and such announcement is made on the date on which the issue is to be closed.
9. Display No models, celebnties, fictional characters, landmarks or caricatures or the likes shall be displayed on or for n pant of the offer documents or issue advertisements
10 No slogans. expletives or non-factual and- unsubstantiated titles should appear in the issue advertisements ooffer documents. :
11 if anyadvertisementcames amNfnancioldata, it should also contain data for the past three y ears and shall include particulars relating to sales, gross profit, net prot.t, share capital, reserves, earnings pet share, dividends and the Qok values.
12. No incenhYe, apart from the permissible underwriting comiiussion or brokerage, shall be offered through aiiyadvertlsements to am one associated with marketing the issue
APPLICATIONS FORMS TO BE ACCOMPANIED BY AN ABRIDGED PROSPECTUS