What is the difference between Section 26(2) and Section 31?
Sec 26(2) talks about non applicability of section 26. It covers a situation where shares/debentures are being issued to EXISTING MEMBERS/DEBENTURES ( eg: right issue) OR issue of shares/debentures is uniform in all respect & are already listed on RSE (Eg: bonus shares) Sec 31 talks about shelf prospectus. In that one or more than one issue of securites is made over the period of time to different people. The same shelf prospectus gives details of all those issues. Section 26 requirement are to be complied with in that case. (Eg: co. raises 1 crore Rs. By making 2 issues of shares of 50 L each over the period of a year). Same shareholders may or may not participate in second issue.