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SEBI directs companies to release 10-minute video before launching IPO: Market regulator SEBI has issued a new directive on the increase in the number of misleading IPO advertisements on social media. SEBI will have to make a 10-minute video of the company launching the IPO before the launch and release it on its website.
Most people are relying on social media, as well as following the advice and advertisements of influential persons, communities and groups. Many of them are also doing stock market marketing. In which they give wrong information in many posts and on the basis of that, there have been incidents of investors suffering huge losses on the investments made in the stock market.
SEBI directed companies to give IPO
Many influential people on social media give misleading information about the shares of any company. Trapped in their trap, many investors invest their money in the shares or IPO of the company mentioned by them. And investors suffer losses. SEBI has advised investors to stay away from such influential people. Also, companies launching IPOs have been instructed to post a 10-minute video on their website before launching the IPO. This video should contain complete and correct information about the IPO. SEBI has said that the information given in the video should be completely factual and should not contain things that mislead investors.
This information should be covered in a 10 minute video
- Complete information about the company's business
- Complete information about the promoters of the company
- Complete information about the management of the company and the financial position of the company
- Information about any legal issue in the court
- in front of an investor The upcoming Risks Complete information about the ,
Videos must be uploaded on each platform
SEBI has said that the company will have to post this video on all social media platforms (Facebook, LinkedIn, X etc.) including its website. This video will also have to be posted on the website of Association of Investment Bankers of India (AIBI). Also, a QR code will also have to be given which should have complete information regarding the IPO. These videos should be in both Hindi and English languages.
The new rule will come into effect from October
This order of SEBI will become mandatory for companies from October. However, the order will be implemented voluntarily from July 1. When companies file Draft Red Herring Prospectus (DRHP) related to IPO from July 1, they will have to disclose information about these videos as well.
