Santosh, CEO of the company, has advised the Board of directors of an unlisted company that in order to market the public issue and generate interest and awareness amongst the public a prospectus can be issued without gi

As per Explanation appended to Section 32 of the Companies Act, 2013, 'Red herring Prospectus' means 'a prospectus which does not include complete particulars of the quantum or price of the securities included therein.' In simple terms, a Red herring Prospectus is a prospectus, which does not include details of either price or number of securities being offered, or the amount of issue. According to section 32(1) of the Companies Act, 2013, a company proposing to make an offer of securities may issue a Red herring Prospectus prior to the issue of a prospectus. Such company proposing to issue a Red herring Prospectus shall file it with the Registrar of Companies at least 3 days prior to the opening of the subscription list and the offer. Therefore, the advice given by CEO Santosh is correct.