PROSPECTUS

Group Members
Awais Mustafa Waseem Rubani Mabroor Ahmed

AWAIS MUSTAFA

AGENDA
What is Prospectus Types of Prospectus SECP Organizational Structure of SECP Data and Information at SECP Division of SECP Prospectus of SECP Statement in Lieu of Prospectus Responsibilities of SECP Conclusion

DEFINATION
A document described or issued as prospectus and includes any notice, circular, advertisement or other document inviting deposits from the public or inviting the offers from public for subscription or purchase of shares or debentures of a company.

IN SHORT : Prospectus is an invitation to the public to become shareholders or to take up debentures. It describes the soundness of the business which the company proposes to undertake and broad idea about its profitability.

TYPES OF PROSPECTUS
ABRIDGED PROSPECTUS. DEEMED PROSPECTUS.

SHELF PROSPECTUS.
RED HEARING PROSPECTUS.

PROSPECTUS What is offer?

Prospectus to be in writing Invitation to public Offer to the public

COMPANY PROSPECTUS
MEANING.

LEGAL REQUIREMENTS OF PROSPECTUS.

TYPES OF PROSPECTUS. CONTENTS OF PROSPECTUS. FORMALITIES IN ISSUING COMPANY PROSPECTUS STATEMENT IN LIEU OF A PROSPECTUS.

LEGAL REQUIREMENTS OF PROSPECTUS

A Prospectus is required to be issued only after the incorporation of company. The prospectus must contain all the particulars, listed in the schedule II of Companies act. The prospectus must be dated. Before a prospectus is issued, a copy of it must be registered with the registration of companies. Prospectus shall be issued within ninety days of its registration .

MABROOR AHMED

S E C P

SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

Introduction
The SECP is a government agency falls under Ministry of Finance Its purpose is to develop a modern and efficient
corporate sector and a capital market based on sound regulatory principles, to foster economic growth and prosperity in Pakistan.

History
The Securities and Exchange Commission of Pakistan was created to succeed the Corporate Law Authority (CLA). Development Plan of the Asian Development Bank (ADB). A Securities and Exchange Commission of Pakistan Act was passed by the Parliament and promulgated in December 1997. Act becomes operational on January 1 1999.

Organization Structure of SECP

Division of SECP
The work of the Commission has been distributed amongst its six divisions, each of which is headed by an Executive Director and divided into Wings for effective administration. The Divisions are:
Securities Market Division Specialized Companies Company Law Administration Division Enforcement Division Insurance Division Support Services Division

Data and Information at the SECP

SECP holds data and information of over 57,689 registered companies registered with SECP up to December 31st,2010. SECP and its major departments. 1. 2. 3. 4. 5. 6. Registration Enforcement Securities Market & Surveillance NBFC Insurance Finance & Administration

Matters to be stated & Reports to be set out in Prospectus

Sec .56 lays down that every prospectus issued by (a) by or behalf of a company, or (b) by or on behalf of any person engaged or interested in the formation of a company, shall (1) State the matters specified in Part 1 of Schedule II ,and (2) Set out the reports specified in Part II Of Schedule II

Part 1 of Schedule II
General Information Capital structure of the Company Terms of the present issue Particulars of the issue Company, management and Project Outstanding Litigation Management Perception of Risk Factors

Part 2 of Schedule II
General Information Financial Information Statutory and other information

Part 3 of Schedule II-applying to Parts I & II of Schedule II

(b) the purchase money is to be paid or satisfied,wholly or in part,out of the proceeds of the issue offered for subscription by the prospectus; (c) the contract depends on its validity or fulfillment on the result of that issue

Part 3 of Schedule II-applying to Parts I & II of Schedule II

2.In the case of a company which has been carrying on business for less than 5 financial years means reference to that number of financial years for which business has been carried on. 3.Reasonable time & place at which copies of all balance sheets & profit & loss accounts on which the report of the auditors is based,and material contracts & other documents may be inspected. 4.Term year means the financial year.

WASIM RUBANI

Statement in Lieu of Prospectus

Where a company does not invite public to subscribe for its share , but arranges to get money from private sources , it need not issue a prospectus to the public .In such a case the promoters are required to prepare a draft prospectus known as a statement in lieu of prospectus, which should contain the information required to be disclosed by Schedule III of the Act.

Responsibilities of SECP
Regulating the issue of securities Regulating the business in Stock Exchange and any other securities markets; Supervising and monitoring the activities of any central depository and stock exchange clearing house registering and regulating the working of stock brokers, sub brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, underwriters, portfolio managers

Conclusion:
Prospectus is a mandatory document for limited organization to commence their business, but its complicated procedure delays the operation of any business, therefore a no. of organizations hesitate to issue Prospectus to general public for subscription of share capital & Debenture.