The Securities and Exchange Board of India (Sebi) has initiated discussions to review disclosures involved in public issues and a committee set up for this purpose held a meeting early this week.
Official sources maintained that the Committee for Reviewing the Disclosures and Application Form in public issues (CRDA) had discussions pertaining to presentation of financial data, industry and market information as well as negative statements in offer documents. “....a good part of the periodic review about the disclosures in public issues has already been undertaken in earlier meetings and now the committee is looking to improve current practices,” sources said.
People attending the meeting included senior executives from domestic investment banks and a law firm, according to sources.
A similar committee has previously recommended a number of changes, as per the report dated June 2011 on the Sebi website. It was to look at the adequacy of the disclosures made along with the application form, revisit the structure of information provided to investors and identify legal and other constraints related to disclosures.
In yet another development, Sebi has been asked to set up a committee to look into the compatibility of regulations for private placement of securities with the proposed measures in the new Companies Bill, it is learnt.
A suggestion to this effect was made by Union Ministry of Corporate Affairs amid rising instance of private placement being misused by various entities for raising of funds from public.
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