Incensed over the "planting of articles" and wrongful advertisements in the run up to a company's public offer, market regulator Sebi on Friday pulled up merchant bankers and said it is considering coming out with revised norms on IPO advertisements.
"A lot of information/articles are planted and it is not included in the DRHP (Draft Red Herring Prospectus) ... currently, we (Sebi) have to take cuttings and send it to investment bankers," Sebi's Executive Director Usha Narayanan said while addressing the Association of Merchant Bankers of India summit here.
"We will not be tolerating this forever and will be coming out with norms ... we are preparing a paper currently, " Narayanan said, while saying that Sebi is not against advertising by the company as per "past practices."
"Self-regulation is better or you want us (Sebi) to come out with guidelines?" she asked the audience comprising of merchant bankers. Narayanan also said the market regulator is considering coming out with revised norms for rights issue by companies that have issued Indian Depository Receipts, ASBA (Application Supported by Blocked Amount) norms used during public offers and sector-specific disclosure norms. Narayanan said there can be rights issues by some IDR companies hitting the market soon.
"We have already initiated the process and are working on the guidelines. We need to look at factors like (whether) vetting by one authority is enough and if timelines can be crunched."
Amidst listing of insurance companies being a matter of intense discussion currently, Narayanan said Sebis disclosure norms are sector-neutral currently but it understands that some norms are unique to a sector due to which it is actively considering revising them.
"We are looking at ways to popularise ASBA. We are looking at a common ASBA/non-ASBA form. Consultation is on and shortly we will come out with what needs to be done," she said.
To a query regarding upward revision of retail investor limits to Rs 2,00,000, Narayanan said Sebi has received hundreds of responses and is currently tabulating them.
