Rejection of draft offer documents for deficient disclosures may bar access to capital markets and trigger regulatory action. Rejection of draft offer documents is authorised where disclosures are inadequate or investor assessment of risk is impeded. Key rejection grounds include: capital structure anomalies (circular transactions, unidentifiable promoters, non compliant promoter contributions); vague or improper objects of the issue (repayment without disclosed ultimate purpose, non tangible expenditures without justification, lack of requisite clearances, long delays in utilization); misleading or complex business models; material financial statement concerns (sudden spurts, qualified audits, accounting policy changes, related party predominance); major or concealed litigation; and failures in documentation, information provision or conflict of interest resolution. Consequences include temporary market access prohibition, no fee refund, and public disclosure.