Sebi floats IPO summary, easy compliance on share lock-ins

The market regulator on Thursday proposed to simplify initial public offering (IPO) disclosures and ease hurdles related to locked-in shares, measures expected to benefit both retail investors and issuers.

- Apoorva Ajith

The Securities and Exchange Board of India (Sebi) recommended introducing a new 'offer document summary,' a concise and standardized version of the draft red herring prospectus (DRHP) and red herring prospectus (RHP).

A Sebi consultation paper said this would give investors a quick, readable overview of the company's business, financials, promoter background, key risks and the purpose of the issue. It will replace the current abridged prospectus, often criticised for being repetitive and hard to navigate.