Lights, Camera, IPO: SEBI Proposes Need For Audiovisual Details Of Disclosures

 Financial market regulator Securities and Exchange Board of India (SEBI) has proposed that companies desirous of raising capital through public issues may be required to file disclosures made in the draft red herring prospectus (DRHP) in an audio-visual format.

The disclosures are made for investors so that they can make informed decisions while investing in the company's public issue.

DRHP is a document that consists of the company's financial details, future prospects, and other key aspects regarding the business and is being filed to the regulator to raise money essentially via public offerings of its shares.

In its draft put up on its website on Tuesday, the regulator proposed that the audio visual on the public issues will be in bilingual version -- English and Hindi and made available in the public domain.

SEBI said it is expected that the audiovisual will provide ease in understanding the salient features and also provide reference to various disclosures of the proposed public issue.

Comments and suggestions are sought from the public and they must be submitted by April 9, 2024. In case of any technical issue in submitting the comments through the web-based public comments form, one may write to the regulator.

Eight Minute AV Submission

The duration of each bilingual version of the audiovisual shall be a maximum of eight minutes.

"The total duration of the AV shall be equitably distributed among the material disclosures made under various sections of the public issue offer document viz. risk factors, capital structure, objects of the offer, business of the issuer, financial information, litigations and material developments etc," SEBI said.

"The AV shall be published by Issuer/Lead Manager within 5 working days both at the stage of submission and resubmission of DRHP. It shall be made available in digital/social media platforms of the Issuer and Association of Investment Bankers of India (AIBI)." Lead Manager(s) to the public issue shall be jointly responsible for the content and information made available in the audio-visual.