SEBI proposes audio-visual disclosures for public issue documents
SEBI) on March 19 proposed the inclusion of audio-visual (AV) representations in companies' offer documents for public issues. This move aims to facilitate investors in better comprehending the essential aspects of an offer, as per a PTI report. Stakeholders are invited to share their views with the capital markets regulator on the proposal until April 9.
SEBI proposes that companies seeking listing on the main board should provide disclosures from their Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP) in an Audio Visual (AV) format. The AV presentations on public issues will be bilingual, in English and Hindi, and will be made accessible to the public. The regulator expects the AV presentations to simplify understanding of the significant features and offer references to various disclosures in the proposed public issue.
Each bilingual AV version is suggested to have a maximum duration of 8 minutes, evenly distributing the total duration among material disclosures such as risk factors, capital structure, objectives of the offer, issuer's business, financial information, litigations, and material developments. SEBI also suggested that the AV content should be factual, non-repetitive, and devoid of promotional material. It also mandates updating the AV with the latest information at the RHP stage.
— The AV presentations are required to be published by the issuer or lead manager of the offer within five working days during both the submission and resubmission stages of the DRHP. — These AV presentations shall be made available on digital and social media platforms of the Issuer and the Association of Investment Bankers of India (AIBI). — Web links to the AV presentations will also be provided on stock
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