What is the difference between prospectus and statement in lieu of prospectus?

Basis of comparison                             Prospectus                       lieu of prospectus
Meaning                                       it refers to a legal document          it refers to a document 
                                                    published by company to              issued by company
                                                    invite people for subscribing          when they not offer
                                                     their shares & debentures.           securities to public.        

Objective                                     to encourage public                        to be filed with the 
                                                    subscription.                                    registrar.         

Capital                                         Raised from public.                         Raised from known                                                                                                                sources.    


 So with the above points it would be quite clear both documents are used in different situuataions & opposite circumstances. Hence, before issuing any of these two ,you must know whether you want public subscription or not..

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