It's a very serious issue and the prospectus is supposed to be a very fundamental document upon which the prospective investors base their decision and it passes through several hands and agencies even SEBI.How could it escape the attention of all!!!

I too wonder how come there be errors in prospectus after it had come across various verifications.This is also an example for negligence of duty.The higher official would have approved it assuming his subordinates would have done it in a proper way.

Thanks for this breaking news keep it up. This is a very serious negligence and should be punishable for the appropriate agencies that approved it.

chinmoymukherjee wrote:
[quote]It's a very serious issue and the prospectus is supposed to be a very fundamental document upon which the prospective investors base their decision and it passes through several hands and agencies even SEBI.How could it escape the attention of all!!![/quote]

It is basically the fault of company. SEBI has no role other than ensuring that the prospectus meets the statutory requirements. The SEBI does not ensure the correctness of information and non inclusion of some relevant information. This is a very serious matter. Apparently, the Companies do not exercise enough care and take the investors for granted.

@Gulshan

As I have not tried to lay the blame at anybody's doors any presumption that Sebi should be held responsible is not warranted.At the same time to give Sebi a clean chit won't be proper.An offer document is not even drafted by the company.The job is given to the merchant banker which collects appropriate information from authorised company officials and it is supposed to exercise due diligence and it even has to and file a due diligence certificate with Sebi.Besides,several agencies like Stock Exchanges with which the company's securties are listed and Registrar of Companies,are involved in the process.Sebi,being the capital market regulator has framed various rules,regualtions for various agencies,like mearchant bankers,registrars and so on and so forth.In this case Sebi's role in punishing the merchant banker to the issue is very much relevant.

I agree. when defect in prospectus has been unearthed, SEBI should take appropriate action against the guilty agencies and persons.

It's very shocking that a company of Coal India's stature is involved in this gaffe!

Thanks for sharing your views,Friends.Is this sort of negligence going to be a setback for Coal India?

I don't think the IPO would be affected much.As I believe it must have been a red herring prospectus.

I too feel that this won't have a negative impact on the premier organization's fund raising program. :) :)