Private Law
Mohammad Sadeghi
Abstract
The prospectus is an important document for the securities and exchange market activities that have several functions. It should be considered as a complementary document of the corporate statute and as well as one of the stock and exchange market regulations that were approved by both the stock exchanges ...
Read More
The prospectus is an important document for the securities and exchange market activities that have several functions. It should be considered as a complementary document of the corporate statute and as well as one of the stock and exchange market regulations that were approved by both the stock exchanges organization and financial market supervisory. Financial market supervisory, Bourse, some financial institutions, issuers, and investors make the prospectus the source of numerous rights and duties that give it a special nature that is coming because of the relation between prospectus and those other organizations of the stock exchange market. In this article, the legal functions of the prospectus regarding the securities and exchange market actors will be reviewed. In the view of above, the nature of this issue, its legal status, its features and its value-added are to be mentioned. The prospectus has the joint features of the document (deed) and regulation, so it led to some effects in terms of public and private law that these rights and commitments form a variety of relations between actors. The prospectus reduces the possibility of investors being misled and harmed and covers the investor's risk and the responsibility of the investment service provider or issuers and their managers. While the prospectus can be considered as a consequence of the corporation’s statute because the type of commitment in it is an obligation and responsibility, not a debt — in a specific concept that is in the Islamic jurisprudence or contract law. Thus, it is necessary for the other features to be considered for it and to be interpreted beyond a contractual relation. First, its effect will be determined by the contents and rules governing it. Second, it has legal responsibility and liability disciplinary that the kind of these responsibilities depends on the subject and process of setting the prospectus.