What is shelf prospectus and red herring prospectus?

A Red Herring Prospectus is a document that companies file with SEBI when they go public. It is an updated version of the DRHP and contains detailed information about the company.

A shelf prospectus is a document that allows a company to issue debt securities to the public for up to one year without having to prepare a new prospectus for each new offering. The company only has to provide issue-specific information in the tranche prospectus each time. The shelf prospectus is generally used by companies that want to carry out several debt issues in a row to raise funds.