/financial-express-hindi/media/media_files/2NjaPsl8TyU0N8TQLDve.jpg?w=750&resize=750,375&ssl=1 "Sebi New Circular: Big announcement in SEBI’s new circular, these important instructions given to companies bringing IPO")
Sebi’s new circular to counter financial influencers’ impact:Stock market regulator SEBI has issued a new circular with the intention of protecting common investors from financial influencers or finfluencers who spread wrong information about IPOs. In this circular issued on Friday, all the companies bringing mainboard IPOs have been asked to create and release audio-visual content (AV) giving correct information about their IPOs. In this audio-visual content, investors should also be warned that while taking any decision regarding investment, they should rely only on the offer document and price band advertisement, not on any fin-influencer.
The new directive applies to all main-board IPOs
According to SEBI’s circular, it will be mandatory for all companies bringing main-board public issues to create content in audio-visual format, in which investors are informed about all the disclosures given in the Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP) of the IPO. Apart from these, advertisements giving information about the price band of the IPO should also be released to the general public in AV format. SEBI has said that such audio-visual content should be created for all main-board public issues and released in the public domain. According to the circular, initially such AV content should be released in two languages - English and Hindi and Devanagari script should be used in the Hindi version.
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Companies will have to issue this disclosure
The circular also states that a disclosure will also have to be given in the AV content issued by the companies. This disclosure will state that “Investors are advised to rely only on the information given in the offer document and price band advertisement for making investment decisions. Apart from this, do not rely on any other document, content or information released by fin-influencers on the Internet / online website / social media platforms / micro-blogging platforms regarding any public issue.”
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What AV content should contain
SEBI has stated in its circular that the duration of such AV content should be about 10 minutes and the things said in it should be based on facts and there should not be any repetition or promotional things in them. Also, there should not be any misleading information in it. This AV should include all the necessary information including the company bringing the IPO, the risk factors associated with it, capital structure, objectives of the offer, business of the issuer, promoters, management, summary of financial information, legal cases and terms of the offer.
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When and where will the AV content have to be released
According to SEBI, this AV content should be uploaded on the website of the company bringing the issue as well as on the website of the Association of Investment Bankers of India (AIBI) within 5 days of filing the DHRP with SEBI and should also be made available on the social media platforms of both. The weblink of this AV should also be given on the websites of the stock exchanges and the lead managers of the issue. SEBI has said that all the provisions mentioned in this circular will be implemented mandatorily from October 1, 2024, but on a voluntary basis, they can be implemented only from July 1, 2024.
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