SEBI Mandates Key Disclosures In Visual Format From July 1, Aiming Finfluencers

Securities Exchange Board of India (SEBI) has announced a new directive impacting influencers (individuals who provide financial advice and influence investment decisions) effective July 1, all main board public issues must disclose key information in a bilingual audio-visual (A/V) format, initially in English and Hindi.

The move aims to enhance transparency and ensure investors rely solely on official sources like offer documents and price band advertisements, discouraging dependence on other platforms, including social media channels, for financial advice. SEBI”s decision comes after receiving feedback from stakeholders, prioritising clarity and accuracy in public issue disclosures.

According to the reports, under this mandate, each A/V presentation, approximately 10 minutes in duration, will cover essential sections of the draft red herring prospectus (DRHP) and final prospectus (RHP), providing panoptic insights into the company, risk factors, capital structure, business objectives, and more. The presentations will be made available on digital platforms, Stock exchange websites, and lead managers” portals, ensuring accessibility and adhesion to regulatory guidelines.