A Prospectus is a formal document issued by a body corporate which invites offers from the public for the subscription or purchase of any securities.
Definition: Under Section 2(70) of the Companies Act, 2013, it includes a red herring prospectus, a shelf prospectus, or any notice, circular, or advertisement acting as an invitation to the public.
Legal Requirement: It must contain all material facts and be filed with the Registrar of Companies (ROC) before being issued to the public.
Liability: Any misstatement in a prospectus can lead to both civil and criminal liability for the directors and promoters.
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