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SEBI suggests using audiovisual format for IPO disclosures

New Delhi, March 19 (IANS) – The Securities and Exchange Board of India (SEBI) has proposed new guidelines for issuer companies desiring to list on the main board. They must now provide disclosures in audiovisual (AV) format along with the traditional DRHP and RHP documents in English and Hindi.

According to SEBI, the AV will simplify the understanding of key features and disclosures of a public issue. This move aims to help investors make informed decisions while investing in public issues by providing a more accessible and comprehensible format for information.

Issuer companies looking to raise capital through public issues are required to submit a Draft Red Herring Prospectus (DRHP) with SEBI and stock exchanges. The information in the DRHP is updated based on feedback from regulators before the final Red Herring Prospectus (RHP) is filed with SEBI and the Registrar of Companies (ROC).

SEBI’s guidelines specify that each bilingual AV should not exceed eight minutes in duration and should evenly cover key sections like risk factors, capital structure, business details, financial information, litigations, and material developments. The content must be factual, non-repetitive, and non-promotional.

The AV will be published within five working days of submitting or resubmitting the DRHP and will be shared on digital and social media platforms of the Issuer and the Association of Investment Bankers of India (AIBI). The web link to the AV will also be provided on Stock Exchanges’ websites and accessible through QR codes related to the public issue.

SEBI emphasizes that the Lead Managers to the public issue will be collectively responsible for the content and accuracy of the AV. This move is seen as a step towards enhancing transparency and accessibility in the capital market for investors.

IANS

IANS, established in 1986, is India's largest independent news service, offering 24x7 news from India and South Asia, and a preferred source for diverse content across six business verticals.

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