The ICAI has issued a ‘Guidance Note on Reports in Company Prospectuses (Revised Edition 2019)’ on the reporting requirements relating to financial information to be included in ‘prospectus/offer documents’ such as DRHP, DLoF, PPD, and so on, filed on or after 21/01/2019.
According to ICAI, the purpose of this Guidance Note is to provide practitioners with guidance on reporting requirements relating to financial information to be included in the prospectus in the case of an initial public offering (IPO), as required by the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (hereinafter referred to as the “ICDR Regulations”).
Apart from the IPO, this Guidance Note also applies to other types of filings for the issue of securities (equity shares, debentures, and notes, etc.) such as letter of offer (in case of right issue), placement document (in case of Qualified Institutions Placements ‘QIPs,’ etc., and filings for the issue of units under SEBI (Infrastructure Investment Trusts) Regulations, 2014.
The Guidance Note is designed with the offer or sale of securities in India in mind. As a result, if an offer or sale of securities is made outside of India, the guidelines and formats included in the Guidance Note may need to be modified based on other international guidelines or practises.
This Guidance Note will apply to initial offer documents such as DRHP/ DLoF/ PPD/ others, as well as related subsequent filings filed on or after 21/01/2019. Earlier application is optional.