Regulatory Alerts2022-06-29
Appointment by Issuers of Independent Advisers for IPOs and Public Invitations
The Securities and Exchange Commission mandates that issuers conducting initial public offers or public invitations must appoint a Lead Manager, requiring an independent co-lead manager when the primary manager is affiliated. For IPOs, the guidelines prohibit affiliated banks from serving as escrow receiving banks, obligating issuers to designate a non-affiliated bank and document this in the Escrow Agreement submitted for regulatory approval. Issued under Section 9(d) of the Securities Industry Law, 1993, these directives standardize co-management and fund handling to ensure transparency in public securities offerings.
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