Abridged Prospectus: Section 33 Of Companies Act 2013

As per Section 33 of the Indian Companies Act, 2013 no form of application for the purchase of any of the company’s securities shall be issued unless an abridged prospectus accompanies such condition, a provision in the Companies Act 2013 related to issue of application forms for Securities is as under.

Here you are going to absorb about :

Prospectus of A Company
Red Herring
Shelf Prospectus
Abridged Prospectus
Section 33 of Companies Act 2013
What is a Prospectus?
[Section 2(70) of Companies Act 2013]

Prospectus means any document described or issued as a prospectus and includes red herring as referred to in section 32 or shelf prospectus referred in section 31 or any notice, circular, advertisement, or other document inviting deposits from the public or inviting offers from the public for subscription or purchase of any securities of a body corporate

In Layman’s terms – Any document inviting deposits from the public or inviting offers from the public for subscription of shares in or debentures of a company is called Prospectus.

What is an Abridged Prospectus?
[Section 33(1) of the Companies Act, 2013]

An Abridged Prospectus as per the Companies Act 2013, is defined as the brief summary of the Prospectus, which includes all useful and materialistic information filed before the registrar. As per Section 33(1) of the Companies Act, 2013, an abridged prospectus must be included with the documents for the purchase of securities issued by a company.

Abridged Prospectus means the memorandum as prescribed in Form 2A under sub-section (3) of section 56 of the Companies Act, 1956. It contains all the salient features of a prospectus. It accompanies the application form of public issues.

Basically, it’s a gist of material information that should be accompanied by the company with the application form. It’s just a substitute to the lengthy Prospectus of the company. Other prospectuses include Red Herring (Section 32) and Shelf Prospectus (Section 31).