sebi part 1

8/8/2019 Sebi part 1

1/17

SEBI ( Disclosure &Investors Protection )Guidelines , 2000


2/17

Introduction

One of the primary role of Security Exchange Board of India ( SEBI ) is to protect the interest of investors.

SEBI framed its Disclosure and Investors ProtectionGuidelines (DIP guidelines ) in 1992.

In 2000, SEBI issued Securities and Exchanges Board of

India ( Disclosure and Investors Protection ) Guidelines,2000 which is compilation of all circulars organised inchapter form


3/17

A pplicability of the ( SEBI Guidelines ) :

SEBI Guidelines :

Way in which SEBI ensures compliance withSEBI Guidelines


4/17

CONTENTS OF DIP GUIDELINES

DIP guidelines are divided into chapter and schedules.

Chapters

Schedules


5/17

CHAPTER 1 - DEFINITION1) Abridged prospectus2) Act

3) Advertisement4) Application Supported by

Blocked Amount5) ASBA Investors6) Book Building7) Collection Centre8) Composite Issues9) Convertible Debt Instrument


6/17

10) Credit Rating Agency11) Designated FinancialInstitution12) Debt- Instrument

13) Depository14) Designated Stock Exchange15) Employee means16) Fast Track Issue

17) Firm Allotment18) Green Shoe option19) Guidelines


7/17

20) Infrastructure Company21) Issuer Company22) Listed Company23) Market makers

24) Merchant banker25) Networth26) Offer Document27) Offer for Sale

28) Preferential Allotment29) Public issue

30) Public financial Institution 31) Retail Individual Investor

32) Qualified Institutional Buyer


8/17

31) Retail Individual Investor 32) Qualified Institutional Buyer 33) Resident Retail Individual Investors 34) Retail Individual Investor 35) Retail Individual shareholder 36) Right Issue 37) Schedule 38) Self Certified Syndicate Bank 39) Shelf Prospectus40) undertaking


9/17

CHAPTER 2 ELIGIBILITY NORMS FORCOMPANIES ISSUING SECURITIES A )Condition for issue of securities

B)Initial public offerings by unlisted companiesC)Offer for saleD)Public issue by listed companiesE)Exemption from eligibility normsF) Credit rating for debt instrumentG)Initial public offer gradingH)Outstanding warrant of financial instrument

Partly paid- up sharesMeans of financeFast track issue


10/17

CHAPTER 3 PRICING BYCOMPANIES ISSUINGSECURITIES

A)Public/ Right issue by listed companiesB)Public issue by unlisted companiesC)Infrastructure companiesD)Initial public issue by banksE)Differential pricing

F)Price bondG)Payment of discount / commissions,H)Freedom to determine the denomination of

shares for public/ right issue and to change the standard denomination


11/17

CHAPTER 4 h PROMOTERSCONTRIBUTION & LOCK h IN REQUIREMENTS

CHAPTER 5 h PRE h ISSUEOBLIGATION

1) The lead merchant banker shall exercise due diligence2) Documents to be submitted along with the offer

document by the lead mangerMemorandum of understandingDue diligence certificateCertificate signed by the company secretary Undertaking

List of promoters Group and other Detail


12/17

4) Undertaking

5) Offer document to be made public6) Despatch of issue material7) A uthorised collection8) A dvertisement for right post issues9) A ppointment of compliance officer

10) A bridged prospectus11) A greements with Depositories

3) A ppointment of merchant bankersA ppointment of merchant bankerA ppointment of other intermediaries


13/17

CHAPTER6

CONTENTS OF OFFERDOCUMENTS

Section 1 - content of the prospectus1) Cover pages

Front cover pagesBack cove pages

2) Table of contents 3) Definition and Abbreviations4) Risk factors5) Introduction

Summary InformationGeneral informationCapital structureObject of the offering

6) About the issuer company

Industry overview Business overview


14/17

K ey Industry regulationHistory and corporate structure of the issuer

companyManagementPromoters/ principal shareholderExchange rate

Currency of presentationDividend policy

7) Financial statement8) Legal and other information

Outstanding litigation and material developmentGovernment approvals / licensing arrangement

9) Other regulatory and statutory disclosures10)Offering information

Terms of the issueIssue procedure

11) Description of equity shares and terms of the

articles of association


15/17

Section 2 Content of abridged prospectus1) General instructions2) General information

3) Capital structure of the issuer company4) Particulars of the issue5) Company management and project6) Basis for issue price7) Outstanding litigation and defaults8) Material development9) Expert opinion10)Changes, if any , in directors and auditors during the last

three years

11)Time and place of inspection of material contracts12)Financial performance of the company13)Listed venture s of promoters14)Previous public or right issue, if any, of last 5years


16/17

Section 3 - Contents of the letter of offer

1) Disclosure on investors grievances & redressalsystem

2) Statement regarding minimum subscription clause 3) Signatories to the offer document


17/17