• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

All information outside of the offer document barred

Mumbai , Oct. 18

SEBI has placed restraints on publicity campaigns of companies coming out with public or rights issues.

The regulator has amended its disclosure and investor protection guidelines to introduce provisions that will bar corporate projections, estimates or any information extraneous to the offer document.

This is applicable to all types of corporate information including interviews by promoters or directors from the date of approval of the issue by the company's board to the date of allotment of shares.

The amendments shall come into force with immediate effect, said a SEBI circular.

In the case of publicity material or public communication not consistent with `past practices' (such as an on-going campaign), the regulator has made it mandatory on the part of the issuer to prominently display or announce that the company is proposing to make a public or rights issue of securities.

All public communication and publicity material shall contain only factual information and shall not contain projection or estimate conjectures. The publicity material should strictly adhere to information provided in the pre-issue document.

SEBI has asked the issuer company to make true and prompt disclosure of all material developments taking place during the issue. This is even applicable to developments in the issuer's subsidiary and associate companies.

The regulator has also banned product advertisement of the issuer company that contains any reference, directly or indirectly, to the performance of the company from the date of filing offer document to the date of allotment of securities offered in the issue.

Related Stories:
SEBI chief for realistic pricing of IPOs — `MFs invested significantly in last few months'

More Stories on : IPOs | Regulatory Bodies & Rulings | Advertising

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
UK laws that Indian acquirers need to know about

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line