Practice of giving advertisement in newspapers relating to public issue - Advertisement should not be published between date of announcement and date of closing of subscription list - Companies Law - No. 12/74,

Circular : No. 12/74, dated 5 ‑ 7 ‑ 1974. Subject:- Practice of giving advertisement in newspapers relating to public issue - Advertisement should not be published between date of announcement and date of closing of subscription list It has been brought to the notice of the Government that in advertisements issued on behalf of companies, either directly or through issue-houses or managers to the issue, very often exaggerated claims regarding dividend prospect, capital appreciation, etc., are made. Similar claims are also, at times, made by company managements at the time of press conferences held prior to the dates of entry into the capital market on the basis of which newspapers present bright pictures of the projects, which are quite often unjustified and misleading. Companies may, therefore, be advised not to publish either themselves or through their issue houses, etc., any material relating to the issue between the date of announcement and the date of closing of the subscription list. Similarly, the company managements may be advised to restrain themselves from depicting, at the time of their press conferences, too rosy pictures about the prospects of the companies, unsupported by facts or objective estimates.