The Securities and Exchange Board of India vide its notification dated 4th February 2022 has notified the format for disclosure on front outside cover page of an abridged prospectus.
Section 2(1) of the Companies Act, 2013 (“Companies Act”) defines an abridged Prospectus as a memorandum containing such salient features of a prospectus as may be specified by the Securities and Exchange Board India by making regulations in this behalf.
In order to further simplify, provide greater clarity and consistency in the disclosures across various documents and to provide additional but critical information in the abridged prospectus, the format for disclosures in the abridged prospectus has been revised.
Under the revised format, a company will have to disclose about name of the issuer company, name of the promoter, details of offer to public and offer for sale (OFS)component, details of weighted average cost of acquisition of all shares transacted over the trailing 18 months from the date of RHP( Range of acquisition price) etc.
The Issuer Company / Merchant Bankers (MBs) shall ensure that the disclosures in the abridged prospectus are adequate, accurate and does not contain any misleading or mis-statement and a copy of the abridged prospectus shall be made available on the website of issuer company, lead managers, registrar to an issuers and a link for downloading abridged prospectus shall be provided in price band advertisement.
Further, the issuer company/ MBs shall insert a Quick Response (QR) codeon the front page of the documents such as front outside cover page, abridged prospectus, price band advertisement, etc. as deemed fit by them. The scan of QR code shall lead to downloading of prospectus, abridged prospectus and price band advertisement as applicable.
