In a move towards creating greater transparency, the Securities and Exchange Board of India (SEBI) issued a circular announcing the introduction of the issue summary document (ISD) and the dissemination of issue advertisements.
The circular is applicable to all issuers, including public and private companies. The SEBI has also urged intermediaries such as merchant bankers, underwriters, and registrars to disseminate the ISD and issue advertisements to ensure all stakeholders are informed.
The ISD summarises key information about issues such as the issuer’s financials, the proposed use of funds, the terms of the issue and any risks associated with the issue. The document will be made available to stakeholders including investors, intermediaries and analysts to help them make informed decisions about investing in the issue.
In addition to the ISD, the SEBI has mandated the dissemination of issue advertisements, which will contain key information about the issue and will be widely circulated through various media channels. These advertisements will make investors and other stakeholders aware of the issue and its key details, enabling them to make informed investment decisions.
