law: Companies (Amendment) Act, 2000
  22.
  
  Insertion of new section 60A and 60B.-
  After
  
  section 60 of the principal Act, the following sections shall be inserted,
  
  namely:- '60A. Shelf prospects.-
  1.   Any public financial
  
  institution, public sector bank or scheduled bank whose main object is
  
  financing shall file a shelf prospectus.
  2.   A company filing a
  
  shelf prospectus with the Registrar shall not be required to file prospectus
  
  afresh at every stage of offer of securities by it within a period of validity
  
  of such shelf prospectus.
  3.   A company filing a
  
  shelf prospectus shall be required to file an information memorandum on all
  
  material facts relating to new charges created, changes in the financial
  
  position as have occurred between the first offer of securities, previous offer
  
  of securities and the succeeding offer of securities within such time as may be
  
  prescribed by the Central Government, prior to making of a second or subsequent
  
  offer of securities under the shelf prospectus.
  4.   An information
  
  memorandum shall be issued to the public along with shelf prospectus filed at
  
  the stage of the first offer of securities and such prospectus shall be valid
  
  for a period of one year from the date of opening of the first issue of
  
  securities under that prospectus: Provided that where an update of information
  
  memorandum is filed every time an offer of securities is made, such memorandum
  
  together with the shelf prospectus shall constitute the prospectus.
  Explanation.-For
  
  the purpose of this section,-
  a.   "financing"
  
  means making loans to, or subscribing in the capital of, a private industrial
  
  enterprise engaged in infrastructural financing or such other company as the
  
  Central Government may notify in this behalf;
  b.   "shelf
  
  prospectus" means a prospectus issued by any financial institution or bank
  
  for one or more issues of the securities or class of securities specified in
  
  that prospectus. 60B. Information memorandum.-
  1.   A public company
  
  making an issue of securities may circulate information memorandum to the
  
  public prior to filing of a prospectus.
  2.   A company inviting
  
  subscription by an information memorandum shall be bound to file a prospectus
  
  prior to the opening of the subscription lists and the offer as a red herring
  
  prospectus, at least three days before the opening of the offer.
  3.   The information
  
  memorandum and red herring prospectus shall carry same obligations as are
  
  applicable in the case of a prospectus.
  4.   Any variation between
  
  the information memorandum and the red herring prospectus shall be highlighted
  
  as variations by the issuing company.
  5.   Explanation.-For the
  
  purposes of sub-sections (2), (3) and (4), "red herring prospectus"
  
  means a prospectus which does not have complete particulars on the price of the
  
  securities offered and the quantum of securities offered. (5) Every variation
  
  as made and highlighted in accordance with sub-section (4) above shall be
  
  individually intimated to the persons invited to subscribe to the issue of securities.
  
  
  6.   In the event of the
  
  issuing company or the underwriters to the issue have invited or received
  
  advance subscription by way of cash or post-dated cheques or stock-invest, the
  
  company or such underwriters or bankers to the issue shall not encash such subscription
  
  
  
  moneys or post-dated cheques or stock-invest before the date of opening of the
  
  issue, without having individually intimated the prospective subscribers of the
  
  variation and without having offered an opportunity to such prospective
  
  subscribers o withdraw their application and cancel their post-dated cheques or
  
  stock-invest or return of subscription paid.
  7.   The applicant or
  
  proposed subscriber shall exercise his right to withdraw from the application
  
  on any intimation of variation within seven days from the date of such
  
  intimation and shall indicate such withdrawal in writing to the company and the
  
  under writers.
  8.   Any application for
  
  subscription which is acted upon by the company or underwriters or bankers to
  
  the issue without having given enough information of any variations, or the
  
  particulars of withdrawing the offer or opportunity for cancelling the post-
  
  acted cheques or stock-invest or stop payments for such payments shall be void
  
  and the applicants shall be entitled to receive a refund or return of its
  
  post-dated cheques or stock-invest or subscription moneys or cancellation of
  
  its application, as if the said application had never been made and the
  
  applicants are entitled to receive back their original application and interest
  
  at the rate of fifteen per cent. from the date of encashment till payment of
  
  realisation.
  9.   Upon the closing of
  
  the offer of securities, a final 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 were not complete in the redherring
  
  prospectus shall be filed in a case of a listed public company with the
  
  Securities and Exchange Board of India and Registrar, and in any other case
  
  with the Registrar only.'.