SEBI Circular entailing obligations that exceed advantages - Merchant Bankers are now required to provide Disclosure of Track Record of the Public Issues managed by them on their web-site.
SEBI CIRCULAR CIR/MIRSD/1/2012 dated January 10, 2012
Merchant bankers shall have to now disclose the track record of the performance of the public issues managed by them. The track record shall be disclosed for a period of three financial years from the date of listing for each public issue managed by the merchant banker.
The objective of this move is to enable investors to evaluate the post-issue performance of the issuer in terms of disclosures made in the offer documents. This will also enable them to understand the level of due diligence exercised by the merchant bankers.
The details prescribed in the format for disclosure of track record as given in the Annexure to the circular, inter alia, include Grading issued by rating agency,,% of QIB holding (for three years),Trading status (frequency), Change in directors, Status of implementation of project
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