SEBI cuts down paper work for public offer documents

India Infoline News Service | Mumbai |

General Information Document should highlight the key rules, processes and procedures applicable to public issues

Market regulator SEBI (Securities and Exchange Board of India) on Wednesday asked the companies to give them an abridged prospectus for IPOs and FPOs with key information only, while providing generic details in a separate document.

General Information Document (GID) should highlight the key rules, processes and procedures applicable to public issues. The purpose of the “GID for Investing in Public Issues” is to provide general guidance to potential Bidders / Applicants in IPOs and FPOs, on the processes governing IPOs and FPOs.

This 'General Information Document' would also need to be published on the websites of the issuer company, stock exchanges and merchant bankers, while a copy would need to be delivered to the investor as and when requested.
“... information which is of generic nature and not specific to the issuer shall be brought out in the form of a GID as specified by the Board, SEBI said in a circular on Wednesday.

Generic information need not be provided in the Abridged Prospectus,” SEBI added.

The new GID would be required to be published for all IPOs and FPOs for which the Red Herring Prospectus (RHP) has not been filed with the Registrar of Companies (RoC) as on 23rd October.

"The updated GID is made available to investors as well as stock exchange where the shares pursuant to an issue are proposed to be listed and to the respective lead manager to the issue, where DRHP /RHP/ is made available," it added. 



 

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