Purpose

• When a financial institution wants financing from the Central Government in India, it must provide a shelf prospectus to the Registrar of Companies. A shelf prospectus contains one or more issues of the securities listed in the prospectus. It is a notification to the public of the transaction the institution plans to do, and it is the company's way into the primary market.
  
  

Process

• The financial institution creates a shelf prospective and files in with the Registrar. Once it is filed, it remains valid for 1 year to the public. All securities wanted by the financial institution are listed in the prospectus. If five securities are wanted, only one shelf prospectus is needed.
  
  

Features

• Shelf prospectuses are under India's code of laws in sections 60A and 60B, which stipulate all requirements of the prospectuses. Once a prospectus is filed, the company has access to the primary market for 1 year. The company does not need to file another shelf prospectus until the 1-year period ends.