SEBI Consultation paper for audio-visual representation of disclosures made in Public Issue Offer Documents
Markets watchdog SEBI has proposed introducing audio-visual representation of disclosures made by companies in their offer documents for public issues, a move that will help investors have an easier understanding about the key features of an offer.
As per SEBI Circular, It is proposed that the disclosures made in the DRHP (Draft Red Herring Prospectus) and RHP (Red Herring Prospectus) of public issues shall also be made available in Audio Visual (AV) format by the issuer companies desiring to list on the main board. Further, the AV on the public issues will be in bilingual version i.e. English and Hindi and made available in the public domain.
As per SEBI, it is expected that the AV will provide ease in understanding the salient features and also provide reference to various disclosures of the proposed public issue. SEBI has suggested that the duration of each bilingual version of the AV should be a maximum of 8 minutes. The total duration of the AV should be equitably distributed among the material disclosures made under various sections of the public issue offer document. These include risk factors, capital structure, objects of the offer, business of the issuer, financial information, litigations and material developments.
Comments from stakeholders have been sought on the proposal till April 9.
