SEBI Proposal on IPO AV Presentations May Impact Finfluencers

21 Mar 2024 , 12:45 PM

Market regulator’s proposal to mandate audiovisual (AV) presentations in IPO offer documents could impact finfluencers. Finfluencers, who earn considerable sums by promoting IPOs through video content, may face challenges with the new requirement.

Securities and Exchange Board of India (Sebi) suggests AV presentations start with a disclaimer, advising investors not to rely on content from finfluencers.

The AV presentations must comply with advertising regulations and be limited to a maximum of 8 minutes. Content should be factual, non-repetitive, and non-promotional, covering key disclosures from the offer document.

Lead managers of the IPO will be jointly responsible for the AV content, ensuring accuracy and compliance. The Association of Investment Bankers of India (AIBI) has collaborated with SEBI to create sample IPO videos for investor education and awareness.

AIBI aims to host a repository of standard IPO videos on its website to provide investors with authorized information, reducing reliance on unofficial sources.

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