Mumbai, July 5 (PTI): The Securities and Exchange Board of India has issued certain observations and sought clarifications on the draft prospectus for Tata Consultancy Services’ initial public offering.

Sebi has issued observations on July 2 on the book-built issue of TCS. JM Morgan Stanley, DSP Merrill Lynch and JP Morgan India are lead manager to the issue.

A Tata group official said the capital markets regulator has put forward certain technical observations on the draft prospectus filed on June 10 and “we would respond to them shortly”. These are the first set of observations and not an approval for the IPO, the official said.

TCS, India's largest IT company, would offer 5.54 crore shares of Re 1 each with a greenshoe option. The issue comprises offer for sale of 3.26 crore shares by Tata Sons and certain other shareholders of TCS.

Sebi also issued observations on the rights issues of Sterlite and Centurion Bank and has received draft offer documents from Television Eighteen for its rights issue.