(4) This section — shall not apply to the issue to existing members or debenture holders of a company of a prospectus or form of application relating to securities of the company, whether an applicant for securities will or will not have the right to renounce in favour of other persons; andexcept in so far as it requires a prospectus to be dated, shall not apply to the issue of a prospectus relating to securities which are or are to be in all respects uniform with securities previously issued and for the time being dealt in or quoted on a recognised stock exchange, but, subject as aforesaid, this section shall apply to a prospectus or form of application whether issued on or with reference to the formation of a company or subsequently.
(5) Nothing in this section shall limit or diminish any liability which any person may incur under any law for the time being in force in India or under this Act apart from this section.
In other words, a corporation with securities for sale will attempt to make the prospectus as attractive as possible to potential investors.
Investors interested in purchasing shares of a new stock or shares in a mutual fund will want to study the prospectus carefully.
Federal laws in the United States require any company issuing new securities to register a prospectus with the Securities and Exchange Commission, or SEC.
Black Rock Investments calls a mutual fund prospectus "the most direct route to full fund disclosure." Investment companies known as mutual funds must update the information yearly, if needed.
Thus, a prospectus for a mutual fund would be good for one year or less.
A prospectus issued by or on behalf of a company or in relation to an intended company shall be dated, and that date shall, unless the contrary is proved, be taken as the date of publication of the prospectus.