Guidelines for returning of draft offer document and its resubmission
Summary
SEBI issues guidelines for returning draft offer documents that lack compliance with Schedule VI of the ICDR Regulations to ensure timely processing and investor clarity. Issuers are exempt from paying fees for resubmitting returned draft offer documents, though standard filing fees for specific changes remain applicable. The issuer must publicly announce the resubmission within two days and inform sectoral regulators about the return and subsequent resubmission.
Text
draft offer document shall be scrutinized based on the broad guidelines and such documents which are not compliant with the instructions provided under Schedule VI of ICDR Regulations and guidelines provided hereunder, shall be returned to the issuer.
where draft offer document is returned in terms of these guidelines, there shall be no requirement for payment of any fees on account of resubmission of draft offer document.
Disclosures made in the draft offer document do not satisfy one or more of the following requirements: simple language, clear/concise presentation, avoidance of complex/vague explanations, appropriate risk factor wording.
The draft offer document requires substantial revision or addenda on key disclosures, in accordance with the clarifications / explanations sought on the draft offer document; or corrective measures on account of regulatory interpretation.
The information required to be included in the draft offer document is not clearly understandable without the necessity of referring to the general rules and regulations.
Where any other regulatory authority/enforcement agencies has expressed material concern with regard to issue / draft offer document filed by the issuer.
Where there are any pending litigation matters in any court or tribunal having an impact on the issue with regard to eligibility criteria provided under ICDR Regulations for the issue / draft offer document filed by the issuer.
While there shall be no requirement for payment of any fees on account of resubmission of draft offer document, the requirement for paying applicable fees for the changes... specified in Schedule XVI of the ICDR Regulations... shall continue to apply as is applicable to issuer for updation in offer document.
There shall be no refund of the filing fees on account of non-submission of draft offer document by the issuer after return.
The issuer, within two days of resubmission of draft offer document with the Board, shall make a public announcement in the mode and manner as prescribed under ICDR Regulations, as applicable, and the issuer shall also include a disclosure that it is a resubmitted document.
Issuer shall make written intimation to its sectoral regulator, if any, informing about the return and resubmission of the draft offer document, as applicable.
This Circular shall come into force with immediate effect.
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Source: SecMarx — Guidelines for returning of draft offer document and its resubmission. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.