Incensed over the "planting of articles" and wrongful advertisements in the run up to a company's public offer, capital market regulator, Sebi, today pulled up merchant bankers and said it is considering coming out with revised norms on IPO advertisements.
"A lot of information/articles are planted and it is not included in the DRHP (Draft Red Herring Prospectus)..currently, we (Sebi) have to take cuttings and send it to investment bankers," Sebi's Executive Director, Usha Narayanan, said while addressing the Association of Merchant Bankers of India summit here.
"We will not be tolerating this forever and will be coming out with norms...we are preparing a paper currently, Narayanan said, while saying that Sebi is not against advertising by the company as per "past practices."
"Self-regulation is better or you want us (Sebi) to come out with guidelines?” she asked the audience comprising of merchant bankers.
Narayanan also said the market regulator is considering coming out with revised norms for rights issue by companies that have issued Indian Depository Receipts, ASBA (Application Supported by Blocked Amount) norms used during public offers and sector-specific disclosure norms.
Narayanan said there can be rights issues by some IDR companies hitting the market soon.