SEBI Mandates Audio-Visual Disclosures For Public Issue Offer Documents

The Securities and Exchange Board of India (SEBI) has introduced audio-visual (AV) presentations of disclosures within public issue offer documents.

According to a circular issued by SEBI on May 24, 2024, the AV presentations will cover salient disclosures outlined in the Draft Red Herring Prospectus (DRHP), Red Herring Prospectus (RHP), and Price Band Advertisement for main-board public issues. These presentations will be available in both English and Hindi.

The circular emphasize that investors should refrain from relying on unauthorized or unsolicited information found on the internet, online platforms, or social media channels by influencers. Instead, investors are advised to base their decisions solely on information contained in the official offer documents and price band advertisements.

To facilitate easy understanding, the duration of each bilingual AV presentation will be approximately 10 minutes. The content will be distributed equitably to cover material disclosures across various sections of the offer documents, including details about the company, risk factors, capital structure, business objectives, management, financial information, litigations, and material developments.

SEBI mandated that the content of these AV presentations must adhere to strict guidelines. They should be factual, non-repetitive, non-promotional, and devoid of any misleading information. Responsibility for the accuracy and appropriateness of the content lies with the issuer and lead managers of the public issue.

Furthermore, the circular specifies the timeline for uploading AV presentations. They must be made available on the websites of the issuer and the Association of Investment Bankers of India (AIBI) within five working days of filing the DRHP with SEBI. Additionally, they should be accessible on digital and social media platforms of the issuer and AIBI.

This circular will come into effect on a voluntary basis from July 1, 2024, for DRHP filings, with mandatory compliance starting from October 1, 2024.

Click Here To Read/Download Circular