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Difference b/w prospectus and SILP

Shridhi Jain (Company Secretary) (1678 Points)

28 December 2010

Dear frnds,

Wat is the difference between prospectus and statement in lieu of prospectus? When these are to be issued ?

Regards,

Shridhi Jain

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7 Replies

Jaideep (Service) (1368 Points)
Replied 28 December 2010

Prospectus has to be issued with the information as specified, when company is going to issue shares public at large.

SILP has to be submitted to ROC when private company convert into public limited company.

Regards

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Shridhi Jain (Company Secretary) (1678 Points)
Replied 28 December 2010

jaideep,

Wen a listed co. go for issue of preference shares on preferential basis, SILP is not required..???

Wat r u saying is mentioned in sec. 44 but is that only the case where SILP is issued ?

Kindly read sec. 70(1) and explain me pls...

Shridhi Jain (Company Secretary) (1678 Points)
Replied 28 December 2010

Also, pls tell me the procedure to issue preference shares on preferential basis (step by step).

Regards,

Shridhi jain

Jayashree S Iyer (Company Secretary) (3224 Points)
Replied 28 December 2010

Prospectus / SILP is required only in case of public companies.

Prospectus is issued when you invite the public to subscribe for shares while statement in lieu of prosectus is filed when shares are not issued to the public but only to select persons without inviting the public at large.

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Ajay Mishra (Company Secretary) (74337 Points)
Replied 28 December 2010

Following link will help you:

https://www.docstoc.com/docs/975971/CHAPTER7

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Shridhi Jain (Company Secretary) (1678 Points)
Replied 28 December 2010

Thanks to all of you for ur kind reply.....

Also Pls tell me the procedure..?

Regards,

Shridhi Jain

Jaideep (Service) (1368 Points)
Replied 28 December 2010

Hi,

Procedure Will Be:

Board Meeting to convene EGM for approving resolution for issue of shares, notice and Exp Statement.
Conduct EGM
File for 23.
Board Meeting to allot shares.
File form 2.
Update Registers.

Thanks & Regards

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