Disclosure of Track Record of the public issues managed by Merchant Bankers

SEBI in its circular CIR/MIRSD/1/2012 dated 10th Jan'2012 stated that:

1. The offer document shall contain necessary disclosures so as to enable investors to take informed decision when  it comes to Investments.Further, a merchant banker is required to exercise due diligence and satisfy himself about all the aspects of the issue with adequate of disclosures of the information that may be necessary for the Investors.

2. Therefore, it is necessary for 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. 

3. In view of the above, it has now been decided in consultation with the merchant bankers that they shall 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. In case, there are more than one merchant banker, all of them are supposed to sign the Due Diligence Certificate as disclosed in the offer document, that shall disclose the track record.

4. The circular shall be applicable for the public issues listed from the date of this circular, with immediate effect. However, in case of past public issues managed during the last three years, the track record as specified in Clause 3 above shall be disclosed latest by March 31, 2012.