The Hindu : Business : Disclosure norms amended

Online edition of India's National Newspaper
Wednesday, Jan 26, 2005

Business

Business

Disclosure norms amended

By Our Special Correspondent

MUMBAI, JAN. 25. The Securities and Exchange Board of India today amended disclosure guidelines to set a uniform disclosure format. It stated that pre-issue advertisements could have minimum details. The SEBI also removed curbs on appointment of co-managers and advisors to the issue. These amendments would be applicable from February 25.

However, "the standard order of presentation is not intended to reduce the flexibility to the issuer to include other disclosures not mentioned in the guidelines. Issuers are free to make additional disclosures, so long as they are not inconsistent with the guidelines,'' SEBI stated.

On advertisements of public issues, SEBI stated that the issue advertisements — pre-issue advertisements, issue opening or closing advertisements — shall contain the minimum details prescribed in the formats specified in the guidelines. The issue advertisements like issue closing or opening advertisement, would be optional. This is implemented "in view of the cost involved and also in view of the fact that abridged prospectuses are available to investors along with the application form,'' SEBI stated.

The issuer company has an option of including additional disclosures in these advertisements so long as they are not inconsistent with the guidelines. The SEBI also prescribed that "any bill board advertisement in regard to an issue shall not contain information other than as stipulated in the formats specified in the guidelines.''

Printer friendly page
Send this article to Friends by E-Mail

Business

News Update

Stories in this Section