SEBI moots draft papers of public offers to include audio-visuals

SEBI has proposed that the disclosures made in the draft red herring (DRHP) and red herring (RHP) prospectus of public issues be made available in audio-visual (AV) format by the issuer companies listing on the main board. The AV will be in English and Hindi and made available in public domain.

This is to provide ease in understanding the salient features and provide reference to various disclosures of the proposed public issue.

The duration of the AV will be a maximum of 8 minutes. The total duration will be equitably distributed among the material disclosures made under various sections of the public issue offer document such as risk factors, capital structure, objects of the offer, business of the issuer, financial information, litigations and material developments.

The content of the AV has to be factual, non-repetitive and non-promotional in nature. The AV will be revised at the RHP stage. The AV will be published within five working days of submission and resubmission of DRHP.

It has to be made available in digital/social media platforms of the Issuer and Association of Investment Bankers of India (AIBI). The web link of the AV will be made available on the websites of stock exchanges, lead managers and accessible from the QR code pertaining to the public issue.