SEBI issues norms for simpler bid forms for public offer

SEBI has also asked merchant bankers to disclose price information of past issues handled by them in Draft Red Herring Prospectus, Red Herring Prospectus and prospectus filed with Registrar of Companies

Mumbai: The Securities and Exchange Board of India (SEBI) on Tuesday simplified application-cum-bidding form for public offer with modification in structure, design, contents among others to make it more investor-friendly, reports PTI.

From 1st November onwards, the application-cum-bidding form would be printed in a booklet form of A4 size paper, SEBI said in a statement.

Besides, there will be a single form for ASBA (Application Supported by Blocked Amounts) and Non-ASBA applicants as per the changed rules.

In order to ensure uniformity and to facilitate easier identification, colour of the form has also been standardised.

The application form will be white for resident Indian and eligible NRIs applying on a non-repatriation basis, it said.

Eligible NRIs, FIIs and their sub-accounts will have to apply in a blue form excluding sub-accounts which are foreign corporates or foreign individuals bidding under the QIB portion, it said.

On text of the data fields, the market regulator has changed the placements of some data fields for ease of reference by investors.

"Company specific information is now included in an abridged prospectus," the regulator said.

These new guidelines shall be effective from 1 November 2011 for all upcoming public offers filed on or after the said date.

It has also added new data fields like discounts, net price, etc, to help investors to pay the correct amount.

As per the new rules, signature of only the first bidder would be required in case of joint holders.

SEBI has also introduced additional provision for stamp of broker or SCSB branch.

SEBI, which had received board approval for these changes on 26th July, notified the order on Tuesday.

In a related development, SEBI has made it mandatory for merchant bankers to disclose their track record in offer documents for public issues.

Issuing instructions in this regard, the market watchdog has asked merchant bankers to disclose price information of past issues handled by them in Draft Red Herring Prospectus (DRHP), Red Herring Prospectus (RHP) and prospectus filed with Registrar of Companies.

The instructions will be applicable from 1st November.

In the offers documents, merchant bankers would have to provide information of the total number of IPOs handled by them in three financial years and the funds raised.

Further they have to provide information about the status of the shares of company they had managed.

This would be in addition to due-diligence certificate which the merchant bankers are required to submit to SEBI.

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