On 15-2-2023, the Securities and Exchange Board of India (‘SEBI’) issued circular on Introduction of Issue Summary Document (ISD) and dissemination of issue advertisements to facilitate consumption of data by stakeholders by making the relevant information/ data points available at the Stock Exchanges and Depositories in a structured manner.
Key Points:
1. ISD will be available IN XBRL (Extensible Business Reporting Language) Format for the following:
• Public issue of specified securities (Initial public offer/ further public offer);
• Further issues (preferential issue, qualified institutions placement, rights issue, issue of American Depository Receipts, Global Depository Receipts and Foreign Currency Convertible Bonds);
• buy-back of equity shares (through tender offer or from the open market);
• open offer under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
• voluntary delisting of equity shares where exit opportunity is required under SEBI (Delisting of Equity Shares) Regulations, 2021.
2. Stages when ISD will be filed:
• 1st stage- Containing pre- issue
• 2nd stage- Containing post-issue after the allotment/ offer is completed
3. Annexure A contains the formats for ISD which provide timeline for submission of the details. It also casts responsibility on the entity responsible for submission (‘Submitting Entity’).
4. Procedure:
• The Submitting Entity can file the details to any stock exchange where the securities of the entity, in relation to which the ISD is being filed, are listed or proposed to be listed.
• As soon as the stock exchange receives the ISD, the information will have to be transmitted to other stock exchanges and depositories for dissemination.
5. Implementation Phases:
• 1st phase- the roll-out will be of ISD for public issues of specified securities, for offer documents filed on or before 1-3-2023.
• 2nd phase- ISD for further issues will be implemented from 3-4-2023.
• 3rd phase- ISD for open offer, buy-back and voluntary delisting will be implemented from 2-5-2023.
6. The Lead Managers will then disseminate all advertisements, in pdf format on the website from 1-3-2023, in connection with a public issue under SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
7. SEBI further directed the stock exchanges and Depositories to communicate the status of implementation of the circular within 7 days of implementation in the Monthly Developments Reports.
*Kriti Kumar, Editorial Assistant has reported this brief.