(1) Where a company allots or agrees to allot any securities of the company with a view to all or any of those securities being offered for sale to the public, any document by which the offer for sale to the public is made shall, for all purposes, be deemed to be a prospectus issued by the company; and all provisions of this Act and the rules made thereunder as to the contents of a prospectus shall, with the modifications specified in sub-sections (2) and (3), apply to and have effect in relation to such document as they apply to and have effect in relation to a prospectus issued by the company.

(2) The Securities and Exchange Board shall, by regulations, determine the form and manner of issuing such document.

(3) Where the securities of a company are offered for sale, the company and every person who is a party to the preparation of the prospectus or of the portion thereof containing the untrue or misleading statement shall be liable under sections 34 and 35 in the same manner and to the same extent as if the securities offered for sale to the public were being offered for subscription.