Active Stocks
Fri Jun 14 2024 15:58:47
  1. HDFC Bank share price
  2. 1,597.45 1.05%
  1. State Bank Of India share price
  2. 840.20 -0.44%
  1. Tata Steel share price
  2. 183.05 0.30%
  1. ICICI Bank share price
  2. 1,105.10 -0.20%
  1. Kotak Mahindra Bank share price
  2. 1,717.00 -0.54%
Business News/ Markets / Stock Markets/  To keep finfluencers at bay, public issues to make key disclosures via audio visual format starting July 1, orders Sebi
BackBack

To keep finfluencers at bay, public issues to make key disclosures via audio visual format starting July 1, orders Sebi

These audio-visual presentation at the time of public issues will categorically mention that investors are advised not to rely on any other content displayed anywhere else including on social media channels such as You Tube, X, Facebook and Instagram shared by fin-fluencers.

Sebi circular stipulates that audio visual disclosures will be prepared and placed in the public domain for all main board public issues in bilingual format i.e., English and Hindi (Picture for representational purposes only)Premium
Sebi circular stipulates that audio visual disclosures will be prepared and placed in the public domain for all main board public issues in bilingual format i.e., English and Hindi (Picture for representational purposes only)

Starting July 1, all DRHP (draft red herring prospectus) of public issues will make salient disclosures in audio visual (A/V) format on voluntary basis, capital markets regulator Securities Exchange Board of India (Sebi) directed in a circular recently.

Three months thereafter, these disclosures will have to be made on mandatory basis with effect from October 1, 2024, the circular further noted.

Sebi issued the latest guidelines in view of the comments received from various stakeholders for ease in understanding the features of public issues. Sebi had issued a draft circular to invite comments of the public on March 19, 2024. 

ALSO READ | Sebi’s new circular for stock brokers: What does it say about email and SMS alerts to investors?

The latest Sebi circular now stipulated that such audio visuals will be prepared and placed in the public domain for all main board public issues. This will initially be in bilingual format i.e., in English as well as Hindi. The Hindi version will carry text in Devanagari script.

The audio-visual presentation will make a disclosure to investors that they are advised not to rely on any other document, content or information provided in respect to the public issue  anywhere else including on  Internet/ websites/ social media channels or micro-blogging platforms by fin-fluencers.

ALSO READ | SEBI proposes audio-visual disclosures for public issue documents

The disclosure will also tell investors  that they are advised  to  rely only  on  the information  contained  in the  offer document and price band advertisement for making investment decision.

Key details of the content:

I. The duration of each version (English and Hindi) will be around 10 minutes.

II. The content of the presentation must be factual, non-repetitive, non-promotional and will not be misleading in any manner.

III. The time duration will be equitably distributed to cover disclosures made under various sections of the DRHP  and RHP about the company, risk factors, capital structure, objects of the offer, business of the issuer, promoters, management, summary of financial information, litigations, material developments and terms of the offer etc.

Other key points about the audio/ visual presentation:

1 The audio video presentation will be made available on digital/ social media platforms of the issue and AIBI (Association of Investment Bankers of India). 

2 The A/V link will also be shared on the websites of stock exchanges and lead managers to the issue. 

3 The A/V will be made accessible through QR code pertaining to the public issue.

ALSO READ | SEBI issues ‘unaffected price’ concept, other guidelines to help mitigate impact of market rumors on stock prices

4. The A/V will be updated with information disclosed in RHP/ Prospectus and price band advertisement including details of the issue opening/ closing date, price/ price band etc and uploaded on the date of publication of the price band advertisement or the date of filing of prospectus. 

5. The presentation will be uploaded on the portal of the Issuer and AIBI within five working days of the filing of DRHP with Sebi.

3.6 Crore Indians visited in a single day choosing us as India's undisputed platform for General Election Results. Explore the latest updates here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 30 May 2024, 10:44 AM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started