SEBI amends DIP Guidelines to include further provisions on "Pre-issue Publicity by Issuer Companies"

In order to regulate pre-issue publicity by companies which are planning to make an issue of securities, SEBI has amended the Disclosure and Investor Protection (DIP) Guidelines, to introduce "Restrictions on Pre-issue Publicity" from the time the issuer company’s Board approves the issue till the actual allotment of shares in the issue. The restrictions, inter-alia, require an issuer company to ensure that its publicity is consistent with its past practices, does not contain projections or estimates or any information extraneous to the offer document filed with SEBI. The issuer company is also required to make prompt, true and fair disclosure of all material developments taking place during the above period, relating to its business and securities and also relating to the business and securities of its subsidiaries, group companies, etc., which may have a material effect on the issuer company, by issuing public notices in newspapers.

Source : Equity Bulls

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