Sebi revises disclosure format for abridged prospectus

Mumbai: The Securities and Exchange Board of India (Sebi) on Monday revised the disclosure format for the abridged prospectus.

The regulator said the move is aimed at simplifying and providing greater clarity and consistency in the disclosures across various documents and to provide additional but critical information in the abridged prospectus.

At present, the Companies Act mandates that every application form for the purchase of any securities of a company should be accompanied by an abridged prospectus - which contains the salient features of a prospectus.


"Upon review of the... disclosure requirement, it was felt that due to the multitude of information which is required to be disclosed, the look and text on the front page appears to be crowded," Sebi said.

The regulator said companies should ensure that the qualitative statements in the abridged prospectus should be substantiated with key performance indicators and other quantitative factors.

Sebi also said merchant bankers should insert a Quick Response (QR) code on the front page, which should lead to downloading of prospectus, abridged prospectus and price band advertisement.