SEBI issued a Circular on May 24, 2024, (‘AV Circular’), on Audiovisual representation (‘AV’) of disclosures made in the public issue offer documents.

The key provisions with regard to the AV of the offer documents, as per the AV Circular, are set out below:

i.    The lead manager(s) to the issue will be jointly responsible for the AV and will prepare the AV in compliance with the advertisement code prescribed by SEBI under Schedule IX of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (‘SEBI ICDR Regulations’);

ii.   AVs are required to be in a bilingual version, which would contain a disclaimer at the beginning and the material disclosures made in the various sections of the offer documents while remaining factually concise and non-promotional. Further, the AV will be revised at the red herring prospectus stage, with the updated information; and

iii.  AVs are required to be published by the issuer/lead manager within five working days both at the stage of submission and resubmission of draft red herring prospectus (‘DRHP’) on various platforms including the social media platforms of the issuer and Association of Investment Bankers of India, the websites of Stock Exchanges and the concerned lead managers in the form of a web link and will also be made accessible from the QR code pertaining to the public issue.

The provisions of this Circular will be made applicable to all DRHPs filed with SEBI, on or after July 1, 2024, on a voluntary basis; and October 01, 2024, onwards on mandatory basis.