Issue-related advertisement requirements restrict claims of full subscription, mandate specified disclosures and procedures for rights issues. Regulation 84 requires issuers to publish an advertisement in specified national and regional newspapers and intimate stock exchanges prior to opening a ... Summary
Issue-related advertisement requirements restrict claims of full subscription, mandate specified disclosures and procedures for rights issues.
Regulation 84 requires issuers to publish an advertisement in specified national and regional newspapers and intimate stock exchanges prior to opening a rights issue, disclosing the despatch date of the letter of offer, centres for obtaining duplicate application forms, and a plain paper application procedure with required particulars. The advertisement must warn that using both form and plain paper may lead to rejection and must disclose specific investor details where relevant. During the subscription period, issuers must not advertise that the issue is fully subscribed or indicate investor response; closure announcements are permitted only after the issuer obtains a registrar certificate confirming substantial subscription.
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