7/17/2019 Objectives

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OBJECTIVES

Prospectus is issued with the following broad objectives:

It informs the company about the formation of a new company.

It serves as a written evidence about the terms and conditions of issue of shares or 

debentures of a company. It induces the investors to invest in the shares and debentures of the company.

It describes the nature, extent and future prospectus of the company.

It maintains all authentic records on the issue and make the directors liable for the

misstatement in the prospectus.