To maintain finfluencers at bay, public points to make key disclosures by way of audio visible format beginning July 1, orders Sebi

Starting July 1, all DRHP (draft crimson herring prospectus) of public points will make salient disclosures in audio visible (A/V) format on voluntary foundation, capital markets regulator Securities Exchange Board of India (Sebi) directed in a round lately.

Three months thereafter, these disclosures must be made on obligatory foundation with impact from October 1, 2024, the round additional famous.

Sebi issued the newest tips in view of the feedback obtained from varied stakeholders for ease in understanding the options of public points. Sebi had issued a draft round to ask feedback of the general public on March 19, 2024. 

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The newest Sebi round now stipulated that such audio visuals shall be ready and positioned within the public area for all predominant board public points. This will initially be in bilingual format i.e., in English in addition to Hindi. The Hindi model will carry textual content in Devanagari script.

The audio-visual presentation will make a disclosure to traders that they’re suggested to not depend on some other doc, content material or data offered in respect to the general public challenge  wherever else together with on  Internet/ web sites/ social media channels or micro-blogging platforms by fin-fluencers.

ALSO READ | SEBI proposes audio-visual disclosures for public challenge paperwork

The disclosure may also inform traders  that they’re suggested  to  rely solely  on  the knowledge  contained  within the  supply doc and worth band commercial for making funding choice.

Key particulars of the content material:

I. The length of every model (English and Hindi) shall be round 10 minutes.

II. The content material of the presentation should be factual, non-repetitive, non-promotional and won’t be deceptive in any method.

III. The time length shall be equitably distributed to cowl disclosures made underneath varied sections of the DRHP  and RHP concerning the firm, threat components, capital construction, objects of the supply, enterprise of the issuer, promoters, administration, abstract of economic data, litigations, materials developments and phrases of the supply and so forth.

Other key factors concerning the audio/ visible presentation:

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

2 The A/V hyperlink may also be shared on the web sites of inventory exchanges and lead managers to the problem. 

3 The A/V shall be made accessible by way of QR code pertaining to the general public challenge.

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4. The A/V shall be up to date with data disclosed in RHP/ Prospectus and worth band commercial together with particulars of the problem opening/ time limit, worth/ worth band and so forth and uploaded on the date of publication of the worth band commercial or the date of submitting of prospectus. 

5. The presentation shall be uploaded on the portal of the Issuer and AIBI inside 5 working days of the submitting of DRHP with Sebi.

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Published: 30 May 2024, 10:44 AM IST