Issuer disclosure obligations require true, fair and adequate disclosures with merchant banker verification before debt securities issuance. Regulation 26 mandates that the issuer disclose all material facts in offer documents so disclosures are true, fair and adequate and not misleading; the merchant banker must verify these disclosures and ensure compliance with these Regulations and applicable company law. Intermediaries must perform due diligence for issue, offer and distribution assignments, issuers must treat applicants fairly, and no person may use devices to defraud in connection with debt securities. The issuer and merchant banker must ensure security provides 100% asset cover and the issuer must create a recovery expense fund as specified by the Board.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Issuer disclosure obligations require true, fair and adequate disclosures with merchant banker verification before debt securities issuance.
Regulation 26 mandates that the issuer disclose all material facts in offer documents so disclosures are true, fair and adequate and not misleading; the merchant banker must verify these disclosures and ensure compliance with these Regulations and applicable company law. Intermediaries must perform due diligence for issue, offer and distribution assignments, issuers must treat applicants fairly, and no person may use devices to defraud in connection with debt securities. The issuer and merchant banker must ensure security provides 100% asset cover and the issuer must create a recovery expense fund as specified by the Board.
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