What Is a Deemed Prospectus And What Retail Investors Should Know

Last Update Date: 06-10-2026

Published by Outlook Money

Abhishek Kumar's role: Quoted

Abhishek Kumar explained that despite similar legal protections, retail investors face more practical risk in such offers, citing short timelines, a small retail quota and floor-price volatility. He suggested checking the selling shareholders section and risk factors.

The article explains a deemed prospectus, the offer document used when securities first allotted to an intermediary are later sold to the public, as defined in the Companies Act, 2013 (Section 25). It covers when the rule applies, why retail investors may face more risk, what the document discloses, and how to identify one.

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What Is a Deemed Prospectus And What Retail Investors Should Know

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