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SEBI Tightens Pre-IPO Advertising

October 19, 2006

The Indian stock market regulator, SEBI has tightened the Pre-IPO publicity. You may have noticed pre-IPO publicity in case of GMR Infrastructure, Voltamp Transformers and other third rate companies like Deep Industries.

Now lately you may have witnessed another real estate company Parsvanath builders advertising heavily as it plans to raise money on Dalal Street. Now a company going for IPO cannot advertise from the time the companys board approves the IPO till the time the allotment of shares is done.

The issuer company is also required to make prompt, true and fair disclosure of all material developments that take place during the period referred to above, relating to its business and securities and also relating to the business and securities of its subsidiaries, group companies, etc., which may have a material effect on the issuer company, by issuing public notices in newspapers.

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