1. **SEBI Mandates Audio-Visual Disclosure for IPOs**:
– The Securities and Exchange Board of India (SEBI) has introduced new regulations for companies launching Initial Public Offerings (IPOs).
– A recent circular issued by SEBI stipulates that disclosures typically found in the draft red herring prospectus (DRHP), red herring prospectus (RHP), and price band advertisement for main-board public issues must be presented in an audio-visual (AV) format.
2. **Content of AV Disclosures**:
– The AV content must cover essential details such as the company’s business, promoter and management information, financial data, pending legal matters, risks, and other pertinent details usually included in the DRHP.
– Additionally, the AV should contain a disclaimer advising investors not to rely on any other sources of information regarding the public issue found on the internet, online platforms, or social media platforms by financial influencers.
3. **Purpose and Stakeholder Feedback**:
– SEBI’s initiative aims to enhance investor comprehension of the public issue’s features and the company’s profile.
– The decision to introduce AV disclosures was influenced by feedback from various stakeholders.
4. **Guidelines for AV Content**:
– The AV content should distribute its duration equitably to cover material disclosures from different sections of the DRHP and RHP.
– It must be factual, non-repetitive, non-promotional, and devoid of any misleading information.
5. **Accessibility and Implementation**:
– The AV video will be accessible through the issuer’s website, social media channels, and the Association of Investment Bankers of India (AIBI) website.
– A QR code within the offer documents will lead investors to the video.
– Initially, the videos will be available in English and Hindi.
