What is Information Memorandum (IM)?

To Section 31 of Companies Act 2013, companies that use a shelf prospectus for multiple securities issuances are mandatory to file an Information Memorandum (Form PAS-2) under specific circumstances. This needs to be done when there are material changes in the company’s financial position between the first prospectus filing and subsequent offerings under the same shelf prospectus. https://www.registerkaro.in/post/section-31-of-companies-act-2013

Here, an Information Memorandum is required in the shelf prospectus when the second, third, and fourth issuances are made. The filing deadline for it shall be one month before the subsequent securities offering. The Information Memorandum must be attested by the Registrar of Companies (ROC), the Securities and Exchange Board of India (SEBI), and either the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE) To ensure compliance procedure. The applicable fee for filing the IM is currently set at ₹200, as per relevant MCA Notifications. The Information Memorandum serves as a critical legal compliance to ensure transparency and investor protection when utilizing a shelf prospectus for multiple securities offerings.