Sebi stated that the AV must be factual, non-repetitive, non-promotional, and not misleading.
Sebi mandates IPO-Introducing Firms to publish 10-minute videos for investor awareness. The aim is to simplify understanding of issue and company features. The AV must cover business, promoter, financials, legal matters, and other DRHP details.
Sebi states AV content must be factual, non-repetitive, non-promotional, and not misleading.
Sebi Mandates AV Disclosures for IPO-Introducing Firms to Curb Finfluencer Influence
The video will be accessible on the issuer’s website, social media, AIBI’s website, and offer documents via QR code. Investors are cautioned against relying on other issue-related information from social media or influencers.
Initially, the videos will be in English and Hindi. While voluntary for DRHPs filed from July 1, they become mandatory for drafts after October 1.
Sebi issues new IPO regulations, requiring disclosures in AV format for DRHP, RHP, and price band ads to enhance investor comprehension.
The regulator mandates AV content to include a disclaimer urging investors not to rely on other online sources provided by finfluencers regarding the public issue. These measures aim to enhance investor comprehension of the issue and company features.
Sebi announced in a circular that key disclosures from DRHP, RHP, and Price Band Advertisement will be provided in AV format for main board public issues, based on stakeholder feedback.
As per guidelines, the AV must cover various DRHP and RHP sections equitably, including company details, risk factors, financial summary, and offer terms. Sebi emphasizes factual, non-repetitive, non-promotional, and non-misleading content.
The video will be available on the issuer’s website, social media, AIBI website, and offer documents via QR code. Investors should solely rely on this information and ignore other content from social media or financial influencers.
Initially, the videos will be in English and Hindi. While voluntary for DRHPs filed from July 1, they become mandatory for drafts after October 1.
To curb the influence of finfluencers in the IPO market, Sebi directed all IPO-bound firms to release videos cautioning investors against relying on them for financial advice on social media platforms.
You might also be interested in – SEBI suggests monitoring crypto trading, while RBI maintains concerns about ‘risk’.
