Section 70 makes it obligatory for every public company

Section 70 makes it obligatory for every public company to take either of the following steps:
(i) Issue a prosecution in case the public is to be invited to subscribe to its capital, or .
(ii) Deliver a statement in lieu of prospectus where the company has either not issued a prospectus or though it has issued a prospectus it has not
proceeded to allot any of the shares offered to the public for subscription.
'Statement in lieu of Prospectus' must be filed with the Registrar at least three days before the directors proceed to pass the first allotment resolution.
After confirming to the "guidelines for disclosure and investor protection" issue by SEBI regarding public issue of capital, the directors file a copy of the
prospectus with the Registrar and invite the public to subscribe to the shares of the company by putting the prospectus in circulation. Applications for
shares are received from the public through the company's bankers. If the subscribed capital is at least equal to minimum subscription of 90% of capital
issue, and other conditions of valid allotment are fulfilled, the director pass a formal resolution of allotment. Allotment letters are then posted, return of
allotment is filed with the Registrar and share detruncates are issued to the allotted in exchange of the allotment letters. In case the minimum subscription
is not received, the entire amount with application would have to be refunded to the applicants at the end of 120 days from the opening of the issue. In
case the application money is not returned within the next 10 days (i.e. within 130 days from
the date of opening of the issue), the company and the directors shall be . liable to return the same with interest at the rate of 15% per annum and no
allotment of shares and debentures can be made.