SEBI issues guidance note for investors to understand offer documents

SEBI has issued a ‘Guide to understand the offer document’ with the objective to help the reader to navigate through the content of an offer document. SEBI has explained various sections of the offer document and its importance to the investor. In relation to the section of ‘risk factors’, SEBI has stated that ‘it is generally advised that the investors should go through all the risk factors of the company before making an investment decision.’ This guide is followed by FAQs on the investment in public/rights issue and the book building process.

Copies of the guidance note and the FAQs are available here.