Markets regulator Sebi on Wednesday came out with the issue summary document (ISD) for public issue, further issue, buyback and other offers. ISD is designed to make relevant information regarding public issues on stock exchanges and depositories in a structured manner.
Today in a circular, SEBI Said “to facilitate the consumption of data by stakeholders such as researchers, policy makers, market analysts and market participants in relation to public issues, further issues, buy backPROPOSAL…, it has been decided to make available the relevant information/data points in a structured manner to the stock exchanges and depositories.”
Thus, the market regulator said after consultation with stakeholders, “an Issue Summary Document (ISD) has been prepared.”
ISD will be applicable for public issues such as initial public offer (IPO) and further public offers (FPO, In addition, the document will be used for preferential issues, qualified placement of institutions (QIPs), rights issues, American Depository Receipts (ADRs), Global Depository Receipts (GDRs) and Foreign Currency Convertible Bonds (FCCBs), among others.
Not only this, ISD will be applicable on buyback of equity shares either through tender offer or from the open market. Further, the document shall be used for Open Offer under SEBI’s SAST Regulations. Finally, ISD is also applicable to voluntary delisting of equity shares, where an exit opportunity is required under SEBI’s delisting regulations.
The ISD will be filed in two phases. Firstly, the ISD will be filed with Pre-Issue/Offer field. And in the second stage, it will be filed containing the post-issue/offer fields after the completion of the allotment/offer.
The rollout of ISD will be done in three phases.
In the first phase, the rollout will be for public issue of specified securities for offer documents filed on or after March 01, 2023.
Under the second phase, the ISD will be rolled out for issues from April 03, 2023 onwards.
Further, ISD for open offers, buy-backs and voluntary delistings in the third phase will be implemented from May 02, 2023.
SEBI has directed the stock exchanges and depositories to bring the provisions of this circular to the notice of all registered merchant bankers, listed entities and issuers and also disseminate the same on their websites.
Also, the market regulator has asked the exchanges and depositories to inform the status of implementation of the provisions of this circular within 7 days of its implementation and in their monthly development reports.
Know your inner investor
Do you have guts of steel or are you a victim of insomnia regarding your investments? Let’s define your investment approach.
catch all business News, market news, today’s fresh news events and Breaking News Update on Live Mint. download mint news app To get daily market updates.