The Securities and Exchange Board of India has issued "certain observations" and "sought clarifications" on draft prospectus for Tata Consultancy Services Ltd's initial public offering.

Sebi in a statement on Monday said it has issued observations on July 2 on the book built issue of TCS lead managed by JM Morgan Stanley, DSP Merill Lynch and JP Morgan India Pvt Ltd.

A top Tata group official said the capital market regulator has given 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 IPO, the official said.

TCS, India's largest IT company, would offer 5.54 crore (55.4 million) equity shares of Re 1 each with a green shoe option.

Sebi also issued observations on the rights issues of Sterlite Industries Ltd and Centurion Bank while it has received draft offer documents from media company Television Eighteen India Ltd for its rights issue.