Sebi introduces issue summary document (ISD) for IPO, FPO, buyback, other offers

In a circular today, Sebi said, “to facilitate consumption of data by stakeholders such as researchers, policymakers, market analysts, and market participants, in respect of public issues, further issues, buyback, offers….., it has been decided to make available relevant information/data points at the Stock Exchanges and Depositories in a structured manner.”

Thereby, the market watchdog after consultation with stakeholders, said, “an Issue Summary Document (ISD) has been designed.”

ISD will be applicable for public issues such as initial public offers (IPO) and further public offers (FPO). Also, the document will be used for further issues such as preferential issues, qualified institutions placement (QIP), rights issues, issue of American Depository Receipts (ADR), Global Depository Receipts (GDR), and Foreign Currency Convertible Bonds (FCCBs).

Not just that, the ISD will be applicable on the buyback of equity shares either through a tender offer or from the open market. Further, the document will be used for open offers under Sebi’s SAST Regulations. Lastly, ISD is applicable also on voluntary delisting of equity shares where exit opportunity is required under Sebi’s delisting regulations.

The ISD will be filed in two stages. Firstly, ISD will be filed containing the pre-issue/offer field. And in the second stage, it will be filed containing post-issue / offer fields after allotment/offer is completed.

The rollout of ISD will be carried out in three stages.

In the first stage, the rollout will be for public issues of specified securities, for offer documents filed on or after March 01, 2023.

Under the second stage, ISD will be rolled out for further issues from April 03, 2023.

Further, in the third stage, ISD for open offer, buy-back, and voluntary delisting shall be implemented from May 02, 2023.

Sebi has directed stock exchanges and depositories to bring the provisions of this circular to the notice of all registered merchant bankers, listed entities, and issuers and also disseminate the same on their websites.

Also, the market regulator has asked exchanges and depositors to communicate about the status of the implementation of the provisions of this circular within 7 days of implementation and in their Monthly Developments Reports.