Sebi proposes audiovisual representation of disclosures by companies floating IPOs

Mar 19, 2024

Synopsis
The audiovisuals on the public issues will be in bilingual version i.e. English and Hindi, and made available in the public domain. The duration of each bilingual version of the audiovisual shall be a maximum of 8 minutes.

The Securities and Exchange Board of India plans to ask companies floating draft papers for initial public offering to also make an audiovisual representation of the disclosures in the prospectus.

The capital market regulator has sought public comments on the same by April 9.

Currently, companies who plan to raise capital through a public issue are required to file a draft red herring prospectus with the market regulator with a detailed representation of all the required information that will allow investors to make informed decisions before investing in a company’s shares.

“It is proposed that the disclosures made in the DRHP and RHP of public issues shall also be made available in Audiovisual (AV) format by the issuer companies desiring to list on the main board,” Sebi said.

Further, the audiovisuals on the public issues will be in bilingual version i.e. English and Hindi, and made available in the public domain. The duration of each bilingual version of the audiovisual shall be a maximum of 8 minutes.

The total duration should be equitably distributed among the material disclosures made under various sections of the public issue offer documents such as risk factors, capital structure, objects of the offer, business of the issuer, financial information, litigations and material developments etc.

Sebi believes that the AV will provide ease in understanding the salient features and also provide reference to various disclosures of the proposed public issue.

[The Economic Times]