To help investors more easily understand the key features of offers, market watchdog Securities and Exchange Board of India (Sebi) on Tuesday introduced audiovisual representation of disclosures in offer documents published by companies. I suggested that. problem. Sebi has invited stakeholders till April 9 to comment on the proposal.
In a circular, Sebi said, „The public issue disclosures made in DRHP (Draft Red Herring Prospectus) and RHP (Red Herring Prospectus) will also be made available in audio-visual (AV) format by issuers who wish to do so. It is proposed that the Additionally, the AV on public issues will be bilingual in English and Hindi and will be available in the public domain. ”
According to the regulator, the AV is expected to facilitate understanding of the salient features and also provide references to the various disclosures of the proposed public issue.
Sebi suggested that each bilingual version of the AV should be a maximum of eight minutes in length. The total period of AV should be fairly distributed among the material disclosures made under the various sections of the offering document. These include risk factors, capital structure, subject matter of the offering, the issuer's business, financial information, litigation and significant developments.
In the draft circular, Sebi said, „The content of the AV shall be factual, non-repetitive and non-propaganda. The AV shall be revised with updated information at the RHP stage. ”.
According to the regulator, the AV must be published by the offer issuer/lead manager within five business days at both the submission and resubmission stages of the DRHP.
“This shall be made available on the digital/social media platforms of the issuer and the Association of Investment Banks of India (AIBI). The web link of the said AV shall be made available on the websites of the stock exchanges and the relevant lead underwriters. It shall also be accessible through QR codes related to public issues,” Sebi said.
Companies looking to raise funds through public issue are required to file DRHP with Sebi and stock exchanges. DRHP disclosures will be updated as appropriate in line with views issued by regulatory authorities and stock exchanges. The RHP is then filed with his Sebi and Registrar of Companies (RoC).
Read the full draft circular —
Audiovisual (AV) representation of disclosures made in the public issue offer document
1) In order to create awareness among investors not to rely on unauthorized/unilateral information on public issues and based on inputs received from interested parties, the Red Herring Draft Prospectus (DRHP) and the Red Herring It has been determined that the disclosures made in the Herring Outlook are as follows: To help you understand the salient features of public issues, public issue (RHP) should be made available in audio-visual (AV) format. Such AV shall be prepared by the Lead Manager and placed in the public domain and initially published on the Mainboard in bilingual English and Hindi versions. The Hindi version contains text in Devanagari script.
2) AV content shall adhere to the following guidelines:
2.1) It shall comply with the Advertising Code prescribed by SEBI under Schedule IX of SEBI (Issuance of Capital and Disclosure Requirements) Regulations, 2018.
2.2) It shall begin with the following disclaimer to investors. “Investors are advised not to rely on any other documents, content or information provided on the internet/online websites/social media platforms/microblogging platforms and in the Offer by influencers.” This is because it is not endorsed/commissioned/paid by the company or its promoters/directors/KMP in any way. ”
2.3) Each bilingual version of the AV shall have a maximum length of 8 minutes.
2.4) The total period of AV shall be equitably distributed among the material disclosures made under the various sections of the Offering Document. including risk factors, capital structure, subject matter of the offer, issuer's business, financial information, litigation and important developments.
2.5) The content of the AV is factual, non-repetitive, and non-promotional.
2.6) The AV shall be updated with the latest information at the Red Herring Prospectus (RHP) stage.
3) AV shall be issued by the issuer/lead manager within 5 working days at both the submission and resubmission stages of the DRHP. It will be made available on digital/social media platforms of the issuer and the Association of Indian Investment Banks (AIBI).
4) The web link for such AV shall be available on the websites of the stock exchange and the relevant lead manager, and shall also be accessible via the QR code associated with the publicly traded issue.
5) The Public Issues Lead Manager shall be jointly responsible for the content and information available on the AV.