Regulation 70 - Disclosures in the draft letter of offer and letter of offer - Securities And Exchange Board of India (Issue Of Capital And Disclosure Requirements) Regulations, 2018

PART V: DISCLOSURES IN AND FILING OF LETTERS OF OFFER Disclosures in the draft letter of offer and letter of offer 70. (1) The draft letter of offer and letter of offer shall contain all material disclosures which are true and adequate to enable the applicants to take an informed investment decision. (2) Without prejudice to the generality of sub-regulation (1), the draft letter of offer and letter of offer shall contain disclosures as specified in 2 [Part B or Part B-1] of Schedule VI , as applicable. (3) The lead manager(s) shall exercise due diligence and satisfy themselves about all aspects of the issue including the veracity and adequacy of disclosure in the draft letter of offer and the letter of offer. (4) The lead manager(s) shall call upon the issuer, its promoters and its directors to fulfil their obligations as disclosed by them in the draft letter of offer and letter of offer and as required in terms of these Regulations. (5) The lead manager(s) shall ensure that the information contained in the draft letter of offer and letter of offer and the particulars as per audited financial statements in the letter of offer are not more than six months old from the issue opening date. (6) An issuer shall make disclosures in the draft letter of offer, letter of offer and abridged letter of offer, if the issuer or any of its promoters or directors is a 3 [ wilful defaulter or a fraudulent borrower ] . 1 [ (7) In the letter of offer and the abridged letter of offer, the issuer shall disclose the process of credit of rights entitlements in the demat account and renunciation thereof. ] *********** NOTES:- 1. Inserted vide Notification No. SEBI/LAD-NRO/GN/2019/47 dated 26-12-2019 2. Substituted vide Notifivation No. SEBI/LAD-NRO/GN/2020/31 dated 28-09-2020 before it was read as Part A or Part B 3. Substituted vide Notification No. SEBI/LAD-NRO/GN/ 2022/ 63 dated 14-01-2022 before it was read as wilful defaulter