Distinguish between the following: Shelf prospectus Vs. Red herring prospectus.

Shelf Prospectus: As per Section 31 of the Companies Act, 2013, Shelf Prospectus means a prospectus in respect of which the securities or class of securities included therein are issued for subscription in one or more issues over a certain period of time within a year, without the issue of further prospectus. It has a longer life than a normal prospectus. The concept of shelf prospectus will save expenditure and time of the companies in issuing a new prospectus every time they wish to issue securities to the public within a period of one year. Red Herring Prospectus: As per 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. This is issued during the book building process when the price cannot be finalized at the time of issue of prospectus. It contains only the floor price or a price band within which the bids can move. Upon closure of the bids, a final prospectus shall be issued stating the total capital raised and the closing price of the securities.