Markets regulator SEBI on Thursday decided to reduce the size of abriged prospectus issued during a public issue and enable the companies to save on paper work.
The new regulation would come into effect December 1 onwards.
The Securities and Exchange Board of India (SEBI) on Oct 27 notified the amendment to its Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, according to which the abridged prospectus should not be more than five sheets (both sides printed) including the application form.
The last shall be so positioned that on its tearing-off, no part of the information given in the abridged prospectus is mutilated, states the new rule.
Information which is of generic nature and not specific to the issuer shall be brought out in the form of a General Information Document (GID) specified by SEBI.
Information required to be given in tabular format shall not appear in running text format.
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