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A draft prospectus is a first legal document that a company files to SEBI prior to proceeding with an initial public offering (IPO)
The Draft Prospectus is the document filed to SEBI by a company who wants to go public and list his shares on stock exchanges. A prospectus document contains why the company is coming out with a public issue, financials information and how the issue will be priced. The draft prospectus submitted by the company to Exchange Board of India (SEBI) at least 21 days before the IPO.
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