If the full Red Herring Prospectus (RHP) is a 500-page encyclopedia of a company's life, the Abridged Prospectus is the Summary or Notes you use to pass the exam. Most retail investors find it impossible to read through hundreds of pages of legal and financial jargon. To solve this, SEBI (the market regulator) mandates that every IPO application form must be accompanied by this shortened, easy-to-read version.

The full form of Abridged literally means shortened. In the Indian stock market, an Abridged Prospectus is a legal document that contains only the salient features (the most important bits) of the full prospectus. In 2026, it has become the most powerful tool for a busy investor to understand a business in under 10 minutes.

Key Features of an Abridged Prospectus (2026)

Under Section 33 of the Companies Act 2013 and SEBI guidelines, this document must follow strict rules to ensure it is helpful:

Mandatory Attachment: No company can give you an IPO application form without attaching the Abridged Prospectus. If they do, they face a heavy fine.
The 5-Page Rule: To keep it abridged, SEBI generally limits this document to about 5 to 10 pages.
QR Code Integration: In 2026, every Abridged Prospectus must have a QR Code on the front and back pages. Scanning it takes you directly to the full RHP if you want to dig deeper.
Standardized Format: Every company must present information in the same order making it easy for you to compare Company A with Company B.

What’s Inside? (The 7 Essential Sections)

Even though it is short, it covers all the deal-breakers you need to know:

Company Overview: What does the company actually do? Where is its office?
Promoters & Management: Who are the people running the show? What is their experience?
Objects of the Issue: Why are they asking for your money? (e.g., to pay off debt or buy new machinery).
Financial Snapshot: A simple table showing their Revenue, Profit, and Net Worth for the last 3 years.
Risk Factors: The most honest part of the document lists the top things that could go wrong with the business.
Capital Structure: How much of the company is owned by the founders vs. the public?
Pending Litigations: Are there any major court cases against the company or its owners?

Comparison: Full Prospectus vs. Abridged Prospectus

Feature

Full Prospectus (RHP)

Abridged Prospectus

Length

400 – 600 Pages

5 – 10 Pages

Detail Level

Exhaustive (Every tiny detail)

Summary (Salient features only)

Reading Time

5 – 8 Hours

5 – 10 Minutes

Accessibility

Available Online (SEBI/NSE)

Attached to your Application

Best For

Deep Research/Analysts

Retail Investors

Frequently Asked Questions (FAQs)

Is the Abridged Prospectus a legal document?

Yes. It is a legally binding document. If a company provides false information in the abridged version, they are liable for fraud, just like in the full version.

Can I apply for an IPO without reading it?

Technically yes, but it is not recommended. The law mandates it be given to you so that you aren't investing blindly.

Does it contain the Price Band?

Yes. The Abridged Prospectus contains the price band, the lot size, and the opening/closing dates of the IPO.

Where can I find the QR code?

As per 2026 rules, you will find a QR code on the top-right of the front page. Scan it with your phone to download the 500-page RHP instantly.

Why is it called a Memorandum?

In legal terms, it is a Memorandum containing salient features. It acts as a reminder or a note of the much larger main document.

Are the Risk Factors different in the abridged version?

No. They are the same risks but usually summarized in bullet points to save space and make them easier to read.

Is it available in languages other than English?

Companies often provide the Abridged Prospectus in Hindi and regional languages depending on where they are marketing the IPO.

Can I rely solely on the Abridged Prospectus for my decision?

For most retail investors, it is enough. However, if you are planning to invest a very large amount (NII category), you should check the full RHP for deeper financial details.

What is the penalty if a company doesn't provide it?

A company can be fined ₹50,000 for every single default (every application form sent without it).

How is it different from an IPO Note from my broker?

An IPO Note is an opinion given by your broker (e.g., Buy or Avoid). The Abridged Prospectus is factual information provided directly by the company.

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