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SEC public hearing on proposed amendments to IPO disclosure rules to better suit investors? behaviors

Tuesday 23 January 2018 | No. 6 / 2018

Bangkok, 23 January 2018 ? The SEC is seeking public comments on the proposed amendments to the rules governing disclosure of initial public offering (IPO) information, whereby the issuer would disclose such information in a video format to better respond to investors? changing behaviors and to ensure that investors would have necessary information for making investment decisions.

According to the proposed amendments, an IPO issuer would prepare and disclose the necessary information in the visual and audio formats to better respond to investors? growing habit of accessing news and information from the Internet, and the inconvenience for thorough reading of lengthy registration statements and prospectuses.

The proposal is not expected to add much compliance cost because in practice issuers tend to disclose information to the investing public via VDO and Power Point presentations at IPO roadshows. In any case, such visual and audio presentation must contain at least material information, for example, the shareholding structure of any group of investors and major shareholders, business operation, fundraising objective, and risk factors. This is to ensure that investors would receive material and necessary information before making investment decisions.

In addition, to streamline the disclosure requirements before the effective date of the registration statement, the SEC is proposing to repeal the regulation prescribing submission of the advertising copy or a media sample to be used in the advertisement for the SEC's consideration before the launch of the advertisement. Instead, issuers would be required to supervise and ensure that their advertisement would contain complete, correct and not misleading information.

The consultation paper is available on the SEC website at   Stakeholders and interested parties are welcome to submit comments through the website, or facsimile at 0-2263-6550 or email: The public hearing ends on 21 February 2018.