9.0 The Lead Merchant Banker shall ensure compliance with the guidelines on Advertisement by the issuer company.

9.1 Guidelines on Advertisements

9.1.1 An issue advertisement shall be truthful, fair and clear and shall not contain any statement which is untrue or misleading.

9.1.2 Any advertisement reproducing or purporting to reproduce any information contained in a offer document shall reproduce such information in full and disclose all relevant facts and not be restricted to select extracts relating to that item.

9.1.3 An issue advertisement shall be considered to be misleading, if it contains -

a) Statements made about the performance or activities of the company in the absence of necessary explanatory or qualifying statements, which may give an exaggerated picture of the performance or activities, than what it really is.

b) An inaccurate portrayal of past performance or its portrayal in a manner which implies that past gains or income will be repeated in the future.

9.1.4 a) An advertisement shall be set forth in a clear, concise and understandable language.

         b) Extensive use of technical, legal terminology or complex language and the inclusion of excessive details which may distract the investor, shall be avoided.

9.1.5 An issue advertisement shall not contain statements which promise or guarantee rapid increase in profits.

9.1.6 An issue advertisement shall not contain any information that is not contained in the offer document.

9.1.7 No models, celebrities, fictional characters, landmarks or caricatures or the likes shall be displayed on or form part of the offer documents or issue advertisements.

9.1.8 Issue advertisements shall not appear in the form of crawlers (the advertisements which run simultaneously with the programme in a narrow strip at the bottom of the television screen) on television.
9.1.9 No advertisement shall include any issue slogans or brand names for the issue except the normal commercial name of the company or commercial brand names of its products already in use.

9.1.10 No slogans, expletives or non-factual and unsubstantiated titles shall appear in the issue advertisements or offer documents.

9.1.11 If any advertisement carries any financial data, it shall also contain data for the past three years and shall include particulars relating to sales, gross profit, net profit, share capital, reserves, earnings per share, dividends and the book values.

9.1.12 (a) All issue advertisements in newspapers, Magazines, brochures, pamphlets containing highlights relating to any issue shall also contain risk factors given equal importance in all respects including the print size.

 
(b) The print size of highlights and risk factors in issue advertisements shall not be less than point 7 size.

(c) It shall contain the names of Issuer company, address of its Registered Office, names of the main Lead Merchant Bankers and Registrars to the Issue.

1. No issue advertisement shall be released without giving "Risk Factors" in respect of the concerned issue.

9.1.14 No corporate advertisement of issuer company shall be issued after 21 days of the filing of the offer document with the Board till the closure of the issue unless the risk factors as are required to be mentioned in the offer document, are mentioned in such advertisement.

9.1.15 No product advertisement of such company shall contain any reference directly or indirectly to the performance of the company during the period mentioned in clause 9.1.14.

9.1.16 (a) No advertisement shall be issued stating that the issue has been fully subscribed or oversubscribed during the period the issue is open for subscription, except to the effect that the issue is open or closed.
(b) No announcement regarding closure of the issue shall be made except on the last closing date.

(c) If the issue is fully subscribed before the last closing date as stated in the offer document, the announcement should be made only after the issue is fully subscribed and such announcement is made on the date on which the issued is to be closed.

9.1.17 Announcement regarding closure of issue shall be made only after the Lead Merchant Banker is satisfied that at least 90% of the issue has been subscribed and a certificate has been obtained to that effect from the Registrar to the Issue.

9.1.18 No incentives, apart from the permissible underwriting commission and brokerage, shall be offered through any advertisements to anyone associated with marketing the issue.

9.1.19 In case there is a reservation for the NRIs, the issue advertisement shall specify the same and indicate the place in India from where the individual NRI applicant can procure application forms.

9.2 The Lead Merchant Banker shall also comply with the following:

a) to obtain undertaking from the issuer as part of Memorandum of Understanding to be entered into by the Lead Merchant Banker with the issuer company to the effect that the issuer company shall not directly or indirectly release, during any conference or at any other time, any material or information which is not contained in the offer documents.

b) to ensure that the issuer company obtains approval in respect of all issue advertisements and publicity materials from the Lead Merchant Banker responsible for marketing the issue and also ensure availability of copies of all issue related materials with the Lead Merchant banker at least till the allotment is completed.