Overview
- SEBI’s consultation proposes an 'offer document summary' to replace the abridged prospectus, giving a standardized, concise overview of the business, financials, risks and issue use.
- Issuers would host the summary and full offer document on their websites as well as those of SEBI, stock exchanges and lead managers, with QR codes on IPO application forms linking to the documents.
- The paper addresses operational gaps by allowing pledged pre‑IPO shares to be treated as under lock‑in even when depositories cannot technically create a lock during the pledge.
- Issuers must amend their Articles of Association to recognize the treatment of pledged shares, disclose it prominently in the DRHP and RHP, and notify existing lenders or pledgees.
- Depositories NSDL and CDSL would mark pledged shares as non‑transferable and ensure shares are auto‑locked in the pledger’s or pledgee’s account for the remaining period upon release or invocation, with all measures currently at the consultation stage.