Prospectus advertisement rules: newspapers must carry a bare proforma announcement directing investors to obtain the full prospectus. Section 56 mandates that every prospectus disclose specified matters and reports, and Section 66 allows narrow omissions for newspaper advertisements; publishing extracts or abridged prospectuses in newspapers contravenes full-disclosure requirements, creates statutory and civil liability risks, and may mislead investors. The Department therefore proposes a prescribed proforma announcement-a bare newspaper notice directing investors to obtain the full prospectus from brokers, bankers or the company's registered office-and requires such announcements to be published sufficiently in advance of the subscription opening to allow investors to procure and consider the complete prospectus.
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Provisions expressly mentioned in the judgment/order text.
Prospectus advertisement rules: newspapers must carry a bare proforma announcement directing investors to obtain the full prospectus.
Section 56 mandates that every prospectus disclose specified matters and reports, and Section 66 allows narrow omissions for newspaper advertisements; publishing extracts or abridged prospectuses in newspapers contravenes full-disclosure requirements, creates statutory and civil liability risks, and may mislead investors. The Department therefore proposes a prescribed proforma announcement-a bare newspaper notice directing investors to obtain the full prospectus from brokers, bankers or the company's registered office-and requires such announcements to be published sufficiently in advance of the subscription opening to allow investors to procure and consider the complete prospectus.
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