Sahara India Real Estate Corpn. Ltd. v. SEBI
(2013) 1 SCC 1 · Supreme Court of India
A so-called private placement that in substance invites the public is a prospectus-based public issue.
Unit III · Law of Investments and Securities
Prospectus, deemed prospectus and shelf prospectus
Study aid only. Confirm statute numbers with the current bare Act and the official OU LL.B. (3-YDC) 2024–25 syllabus PDF.
Statute sections
| Act / instrument | Section | Name |
|---|---|---|
| Companies Act, 2013 | 2(70) | Prospectus |
| Companies Act, 2013 | 25–27 | Deemed prospectus, shelf prospectus and red-herring prospectus |
| Companies Act, 2013 | 26 | Matters to be stated in prospectus |
| Companies Act, 2013 | 27 | Variation in terms of contract or objects |
Landmark cases
SEBI v. Ajay Agarwal
(2010) 3 SCC 765 · Supreme Court of India
Misstatements and market deceit in the public-issue process fall within SEBI's enforcement net.
Previous-year questions
Mapped 6 / 10 / 15-mark questions on this topic. Frequency is how many papers repeat the question.
- 6 Prospectus. · 2×
- 6 Statement in Lieu of Prospectus. · 1×
- 10 Amar subscribed for shares issued by Fast Trak Ltd. The prospectus of Fast Trak Ltd. included a statement which was misleading in its forms and contents. On the faith of the prospectus, believing it to be true, Amar subscribed for shares and sustained a loss. Can Amar sue for compensation of loss? If so, who will be sued for such loss? · 1×
- 10 Ramu subscribed for shares issued by 'X' Ltd. The prospectus of 'X' Ltd. included a statement which was misleading in the forms and contents. On the basis of the prospectus, believing it to be true, Ramu subscribed for shares and sustained a loss. Can Ramu sue for compensation of loss? If so, who will be sued for such loss? · 1×
- 15 Explain the administration of a company in relation to issue of prospectus to the general public. · 1×