Question
What is the validity period of a Shelf Prospectus as per
the Companies Act?Solution
Section 31.Shelf prospectus: (1) Any class or classes of companies, as theĀ Securities and Exchange Board may provide by regulations in this behalf, may file a shelf prospectus with theĀ RegistrarĀ at the stage of the first offer ofĀ securitiesĀ included therein which shall indicate a period not exceeding one year as the period of validity of such prospectus which shall commence from the date of opening of the first offer of securities under that prospectus, and in respect of a second or subsequent offer of such securities issued during the period of validity of that prospectus, no furtherĀ prospectusĀ is required.
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