32. Red herring prospectus.
(1) A company proposing to make an offer of securities may issue a red herring
prospectus prior to the issue of a prospectus.
(2) A company proposing to issue a red herring prospectus under sub-section (1) shall
file it with the Registrar at least three days prior to the opening of the subscription list and the
offer.
(3) A red herring prospectus shall carry the same obligations as are applicable to a
prospectus and any variation between the red herring prospectus and a prospectus shall be
highlighted as variations in the prospectus.
(4) Upon the closing of the offer of securities under this section, the prospectus
stating therein the total capital raised, whether by way of debt or share capital, and the
closing price of the securities and any other details as are not included in the red herring
prospectus shall be filed with the Registrar and the Securities and Exchange Board.
Explanation.—For the purposes of this section, the expression “red herring
prospectus” means a prospectus which does not include complete particulars of the quantum
or price of the securities included therein.