Offer Documents

But such uniform formats of disclosure have not been able to contain the quality of disclosure that goes into the document. Guidelines, for example, as to the listing of risk factors are conveniently tackled with routine statements like: "The business of the company is dependent on external factors over which the company has no control."

Indeed, mandatory requirements like this serve no purpose whatsoever. However, Sebi has continued to press forward noting that it is the duty of the lead merchant banker to confirm the veracity of claims made in the offer document and evaluate whether all risk factors are listed.

 

In the case of the mutual fund offer document, however, Sebi has justified its action by saying that uniformity in documents will be easy for investors to understand. But it is still not enough reason for Sebi to be getting into the micro management of the issue process.