Offer For Sale

Any document by which the offer or sale of shares or debentures to public is made shall for all purposes be treated as prospectus. It is an invitation to the general public to purchase the share of a company through an intermediary, such as an issuing house or a merchant bank. 

Following additional information to the matters required to be stated in a prospectus:-

• The net amount of the consideration received or to be received by the company in respect of the securities to which the offer relates; and
• The time and place at which the contract where under the said securities have been or are to be allotted may be inspected.

In order to construe "offer for sale" either of the following conditions needs to be fulfilled:-

• "offer for sale" to the 'public' was made within six months after the allotment or agreement to allot; or
• at the date when the offer was made, the whole consideration to be received by the company in respect of the securities had not been received by it.