In recent years, India has seen a remarkable increase in Initial Public Offerings (IPOs), with companies going public and attract both domestic and international investors, across the retail and institutional spectrum.
So much so, in 2022, the Indian stock exchanges ranked third in the world in terms of IPOs with as many as 22 IPOs going live collecting a cumulative sum of Rs. 59,939 crores. This number was even higher in 2021, with 63 IPOs collecting Rs. 119,882 crores.
But what exactly is an IPO process in India and how does it unfold?
What is an IPO process?
The IPO process is the procedure through which a privately owned company offers its shares to the public for the first time. In plain language, it is when a company decides to transition from being a privately held to a publicly traded entity.During an IPO procedure, the company sells newly created shares or existing shares to investors at an offering price set by the company and the IPO underwriters.
After the IPO closes, the shares are listed on a stock market, such as India's Bombay Stock Exchange (BSE) or National Stock Exchange (NSE). This listing permits the shares to be freely traded in the secondary market among investors.
In India, the entire IPO process has to follow rules and guidelines laid down by the market regulator – the Securities and Exchange Board of India (SEBI).
Steps involved in an IPO process
The IPO procedure consists of numerous critical phases that a company must perform to effectively go public. While specifics may vary based on the country and regulatory requirements, the primary steps IPO process in India are:Step 1: Preliminary Planning
The company's management, along with key stakeholders, analyses the preparedness and feasibility of embarking on a public offering. This entails a comprehensive evaluation of the company's financials, growth potential, market conditions, and regulatory compliance requirements. Through this thorough assessment, they seek to ensure a firm grasp of the company's standing and its readiness to navigate the complexities of the public market.Step 2: Selection of Underwriters
The company selects investment banks or an underwriter to help manage the process. These underwriters have dominant responsibilities such as:- IPO underwriters work closely with the issuing body to determine the initial offering price of the securities using a combination of factors like company profitability, market perception, cash flows, asset valuation, etc. to value its shares.
- They empower the company to proactively prepare for the IPO process, by considering critical factors such as determining the appropriate fundraising target, strategically selecting the securities to be issued, and establishing a mutually beneficial agreement between the underwriter and the company.
- During the IPO, an underwriter can purchase the entire IPO issue and sell it to investors, using their distribution network.
- They create a market for the stock by contacting a wide range of institutional investors, including mutual funds, insurance companies, pension funds, and more.
- Once the issue is on the market, the underwriter guides, stabilizes, and establishes a market for the issued stock.
- Takes on the roles of advisor and evaluator after the issue has been launched.
Step 3: Due Diligence
The organization undergoes a due diligence process, which includes a thorough analysis of financial accounts, legal and regulatory compliance, corporate governance practices, and potential risks.This phase ensures that all vital information pertaining to the IPO is effectively communicated to prospective investors.
By conducting this comprehensive evaluation, the organization aims to provide potential stakeholders with a transparent and accurate portrayal of the IPO, enabling them to make well-informed investment decisions.
Step 4: Drafting the Prospectus
As part of the IPO process in India, a prospectus is prepared by the company in consultation with its legal and financial experts. This document contains in-depth information on the firm, such as its business plan, financials, risk factors, industry overview, and anticipated use of IPO proceeds.The prospectus must adhere to regulatory rules and provide potential investors with openness. This document also functions as a marketing material to rope in investors.
Step 5: SEBI Filings and Approval
The IPO requirements in India include prospectus and other required documentation to be submitted to the appropriate regulatory authorities, the primary one being SEBI.Subject to conformity with applicable rules, the regulatory authority evaluates the filings and issues approval for the IPO.
Step 6: Roadshow and Investor Presentations
The company and its underwriters go on a roadshow to promote the IPO to potential investors. Presentations and meetings with institutional investors, analysts, and other interested parties are part of this process. The purpose of the roadshow is to raise interest in the IPO and gauge investor demand.Step 7: Pricing and Allocation
The company, in conjunction with its underwriters, determines the ultimate offering price and quantity of shares to be offered, considering investor response and prevailing market circumstances. Subsequently, the shares are allocated to various types of investors – institutional investors, retail investors, and corporate personnel.Step 8: IPO Subscription and Allotment
The IPO subscription period begins, allowing investors to purchase the offered shares. Once the subscription period has ended, the shares are distributed to investors as per the allocation criteria established by the firm and the underwriter.Step 9: Listing on Stock Exchanges (NSE and BSE)
Following the allocation, the company's shares are listed on the stock exchange and may be traded publicly. Depending on the company's choices and legal restrictions, the listing may take place on numerous stock exchanges.Step 10: Post-IPO Compliance
Following the IPO, the company must continue to meet ongoing compliance requirements such as periodic financial reporting, transparency requirements, and corporate governance standards. These standards must be followed to ensure openness and responsibility towards shareholders and regulatory bodies.Also Read: What are the Trading Hours for World's Major Stock Exchanges?
IPO process duration
The duration required to complete the IPO procedure in India can vary depending on several factors. Even if a company fully satisfies the regulations, it can take anywhere between four months to a year to complete the public debut.However, the entire operation generally takes four to six months and involves filing a draft prospectus for approval by SEBI.
The process of submitting the draft document to SEBI for review can take between two to four months.
Also, the length of an IPO process varies, depending on the company.
Factors impacting IPO duration
The duration of the IPO process in India depends on several factors. While each IPO is unique, the following factors can significantly change the pre-planned duration of the IPO:- Regulatory Approvals: IPO processes in India follow SEBI guidelines. Obtaining the requisite SEBI approvals is a critical stage in the procedure. The time it takes to receive these approvals might vary based on factors such as the prospectus's completeness and correctness, the complexity of the business, and the timeliness of the firm.
- Due Diligence and Document Preparation: Thorough due diligence, prospectus preparation, and acquiring the relevant documentation are all time-consuming activities. Financial audits, legal compliance assessments, and the disclosure of all necessary information are all part of this. The length of time required for these tasks might be influenced by the complexity and size of a company.
- Market Conditions and Investor Sentiment: The timing of an IPO can be influenced by overall market circumstances and investor mood. Companies may opt to postpone or accelerate their IPO plans depending on market conditions. If market circumstances are unfavourable, corporations may wait for better conditions, which may result in a lengthier IPO process.
- Underwriting Process: Engaging underwriters and selecting the offering price can be time-consuming. Underwriter IPO supports the company with pricing, marketing the IPO, and collaborating with regulatory agencies. The underwriting process's arguments and discussions might influence the schedule.
- Roadshow and Investor Demand: The roadshow, in which the firm presents its investment case to potential investors, is an important component of the IPO process. The time it takes to generate investor demand and gather indications of interest might have an impact on the entire time frame.
- Compliance and Listing Requirements: Companies must meet the compliance standards and listing criteria of the stock exchanges where their shares will be listed. Adherence to corporate governance norms, financial reporting duties, and achieving minimum capitalization requirements are all part of this. The time required to complete these regulations may influence the IPO timetable.
Complete documentation process in IPO
In an IPO, the documentation process entails compiling and submitting numerous documents to regulatory agencies, underwriters, and potential investors. The following is the standard paperwork involved:- Draft Red Herring Prospectus (DRHP): The DRHP is a preliminary prospectus that gives thorough information on the firm, its business activities, financials, risk factors, and IPO objectives. It is submitted to a regulatory authority for examination and approval, such as from SEBI.
- Red Herring Prospectus (RHP): The RHP is the final prospectus, which includes any revisions or adjustments made throughout the regulatory review process. It contains the same detailed information as the DRHP and is distributed to prospective investors during the IPO subscription period.
- Memorandum and Articles of Association: These are the company's constitutional papers. The Memorandum of Association explains the company's goals and powers, whereas the Articles of Association include the rules and regulations that regulate the company's internal operations and management.
- Audited Financial Statements: Companies must furnish audited financial statements for the last three to five years, comprising the balance sheet, income statement, cash flow statement, and statement of changes in equity. These statements give an in-depth analysis of the company's financial performance and status.
- Legal and Regulatory Disclosures: Any legal processes, lawsuits, conflicts, or regulatory actions concerning the company, or its directors must be disclosed. This includes disclosing details regarding outstanding litigation, investigations, or regulatory compliance concerns that might have a major impact on the company's operations or financials.
- Corporate Governance Reports: Companies must provide reports on their corporate governance practices, including information on the membership of their boards, committees, related-party transactions, and codes of conduct. These reports illustrate the company's dedication to openness and sound governance.
- Management Discussion and Analysis: This portion of the prospectus contains information about the company's activities, strategy, prospects, and dangers. It contains talks on industry dynamics, market trends, competition, and the company's market positioning.
- Underwriting Agreement: This agreement is made between the company and the underwriters in charge of the IPO. It specifies both parties' responsibilities and obligations, including the underwriters' pledge to acquire and distribute the shares to investors.
- Legal Opinions: The company's legal counsel provides legal advice to authenticate the legitimacy of the IPO process, compliance with rules, and the integrity of the disclosure papers.
- Other Supporting Documents: Additional papers, such as licenses and permissions, intellectual property registrations, contracts, and other important agreements may be necessary depending on the company's industry, unique requirements and circumstances.
Applying for IPO: Guidance for retail investors
Given below is a step-by-step guidance for retail investors to apply for shares in an IPO:Step 1: First, you need to check if you meet the eligibility requirements for participating in the given IPO. These requirements may vary depending on the brokerage firm, but typically include having a certain account balance or trading activity.
Step 2: If you meet the eligibility requirements, you need to have an account with a brokerage firm that participates in IPOs. You can do this via the broker’s portal.
Step 3: Check for upcoming IPOs that you are interested in and that your brokerage firm is participating in. You can do this by checking the IPO calendar on the brokerage firm's website or app. Brokers often provide information and updates about ongoing IPOs, like:
- Rainbow Children’s Medicare Ltd. IPO
- Veranda Learning Solutions Ltd. IPO
- Paradeep Phosphates Ltd. IPO
- Aether Industries Ltd. IPO
Step 5: After you have placed an order, you will need to wait for the allocation of shares. The allocation process may take a few days, and the number of shares you receive may be less than the number you requested.
Step 6: Once the IPO shares are allocated to you, you can trade them on the secondary market just like any other stock.
Also Read: 6 Things You Should Know About the RBI Retail Direct Scheme
Things to consider before investing in an IPO
Investing in an IPO is just as risky as investing in any other equity instrument. Principally, you need to consider certain factors before you invest, like your investment time horizon, your understanding of the fundamentals of the business, risks, and valuation among others. Here are 5 must-know things before investing in an IPO.Top IPOs in India
Many IPOs have been conducted in India, leading to huge amounts being raised. Some of them are as follows:| Top IPOs | Issued IPO Amount | Date Issued |
| LIC IPO | Rs 21,000 crore | May 4, 2022 |
| Paytm IPO | Rs 18,300 crore | November 2021 |
| Coal India IPO | Rs 15,200 crore | October 2010 |
| Reliance Power IPO | Rs 11,700 crore | January 2008 |
| SBI Life IPO | Rs 10,341 crore | September 2017 |
| GIC IPO | Rs 11,372 crore | October 2017 |
| ONGC IPO | Rs 10,530 crore | March 2004 |
| DLF IPO | Rs 9,187 crore | June 2007 |
| ICICI Prudential Life Insurance IPO | Rs 6,057 crore | September 2016 |
Alternatives to IPOs available
While taking the IPO route is common for companies to raise capital and become publicly traded, there are alternative options available to access funding or provide liquidity to their shareholders.Some of the notable alternatives to IPOs include are as follows:
- Direct Listing A direct listing allows a company to go public without having to issue new shares or raise fresh funds. Existing shareholders, including staff and early investors, can instead sell their shares to the public. This strategy offers stockholders liquidity while avoiding the typical underwriting procedure and its accompanying costs. Spotify and Slack are two notable startups that have chosen direct listings.
- Private Placements Companies can obtain funds through private placements rather than issuing shares to the public through an IPO. A private placement is a transaction in which a company sells shares to a small group of institutional investors, private equity companies, or accredited investors. This strategy allows businesses to obtain cash without having to comply with the same amount of regulatory regulations and public disclosure duties as an IPO. Such investors may also offer the company management flexibility in business operations, which may be difficult if retail investors are present.
- Venture Capital and Private Equity Funding Startups and growth-stage businesses frequently seek investment from venture capital (VC) or private equity (PE) organisations. These financiers contribute funds in exchange for stock or ownership holdings in the company in question. VC and PE capital may provide companies with flexibility, strategic assistance, and industry contacts while deferring or avoiding the challenges of going public.
- Crowdfunding Crowdfunding platforms have grown in popularity as an alternate way to raise cash, particularly for early-stage businesses. Companies can raise cash from a large number of individuals who give small sums through crowdsourcing. Companies may use such platforms to display their products, services, or ideas to a large audience and obtain financial support in exchange.
- Special Purpose Acquisition Companies (SPACs) SPACs have emerged as a viable alternative to going public. A shell corporation is formed solely for the goal of purchasing an existing private firm and taking it public. The SPAC acquires cash through its own IPO and then utilises the proceeds to combine with a target company, essentially taking the target company public. SPACs have gained popularity due to their shorter timelines than regular IPOs.
- Mergers and Acquisitions (M&A) Companies may opt to merge with or be purchased by another firm rather than going public. M&A deals can give existing shareholders liquidity while also providing prospects for expansion through synergies with the acquiring firm. M&A transactions can take several forms, including stock purchases, asset purchases, and mergers of equals.
Each alternate approach has its own set of benefits, drawbacks, and regulatory concerns. When contemplating these alternatives to an IPO, companies should carefully analyse their individual goals, finance requirements, and strategic objectives. Consulting with legal and financial consultants may assist businesses in navigating the intricacies and making educated decisions about the best path for their unique situation.
FAQs – Frequently Asked Questions
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What are the general requirements of an IPO ?
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How many ways can we apply for an IPO ?
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How to apply for an IPO ?
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What are the SEBI guidelines regarding IPO ?
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How does an IPO process work ?
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What is the lock-up period in an IPO ?
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What is the role of underwriters in an IPO ?
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Use of Website in India
This Website is controlled and operated from India and there is no representation that the Materials/information are appropriate or will be available for use in other locations. If you use this Website from outside the India, you are entirely responsible for compliance with all applicable local laws. There is no warranty or representation that a user in one region may obtain the facilities of this website in another region.
Information published on the Website may contain references or cross references to products, programs and facilities offered by ABC Companies/third parties that are not announced or available in your country. Such references do not imply that it is intended to announce such products, programs or facilities in your country. You may consult your local advisors for information regarding the products, programs and services that may be available to you.
In your use of the Website, you may enter correspondence with, purchase goods and/or facilities from, or participate in promotions of advertisers or members or sponsors of the web site, including those of ABC Companies. Unless otherwise stated, any such correspondence, advertisement, purchase or promotion, including the delivery of and the payment for goods and/or facilities, and any other term, condition, warranty or representation associated with such correspondence, purchase or promotion, is solely between you and the applicable ABC Companies and/or third parties.
You agree that Facilities Provider / ABC Companies has no liability, obligation or responsibility for any such correspondence, purchase or promotion between you and any other ABC Companies and/or third parties.
Third party websites
This Website may be linked to other websites (including those of ABC Companies) on the World Wide Web that are not under the control of or maintained by ABCL. Such links do not indicate any responsibility or endorsement on our part for the external website concerned, its contents or the links displayed on it. These links are provided only as a convenience, in order to help you find relevant websites, facilities and/or products that may be of interest to you, quickly and easily. It is your responsibility to decide whether any facilities and/or products available through any of these websites are suitable for your purposes. The Facilities Provider or ABCL is not responsible for the owners or operators of these websites or for any goods or facilities they supply or for the content of their websites and does not give or enter into any conditions, warranties or other terms or representations in relation to any of these or accept any liability in relation to any of these (including any liability arising out of any claim that the content of any external web site to which this web site includes a link infringes the intellectual property rights of any third party).
USE of APP
In case any facilities/services, access/dissemination of information or execution of transaction is done through use of any APP related to ABC Companies, the additional terms and conditions governing the Use of APP shall be applicable and to be read along these Terms of Use.
Postings and monitoring
The Facilities Provider or ABCL or ABC Companies does not routinely monitor your postings to the Website but reserves the right to do so if deemed necessary if it is related to the facilities offered on the web site and to comply with law. However, in our efforts to promote good citizenship within the internet community, if the Facilities Provider or ABCL or ABC Companies becomes aware of inappropriate use of the Website or any of its facilities, any information, opinions, advice or offers posted by any person or entity logged in to the Website or any of its associated sites is to be construed as public conversation only, and the Facilities Provider or ABC Companies shall not be liable or responsible for such public conversation. You agree that in such cases, we will respond in any way that, in our sole discretion, as deemed appropriate. You acknowledge that Facilities Provider or ABC Companies will have the right to report to law enforcement authorities any actions that may be considered illegal, as well as any information it receives of such illegal conduct. When requested, ABC Companies/Facilities Provider will co-operate fully with law enforcement agencies in any investigation of alleged illegal activity on the internet.
Submissions and unauthorized use of any Materials contained on this Website may violate copyright laws, trademark laws, the laws of privacy and publicity, certain communications statutes and regulations and other applicable laws and regulations. You alone are responsible for your actions or the actions of any person using your user name and/or password. As such, you shall indemnify and hold Facilities Provider, ABCL / ABC Companies and its officers, directors, employees, affiliates, agents, licensors, and business partners harmless from and against any and all loss, costs, damages, liabilities, and expenses (including attorneys' fees) incurred in relation to, arising from, or for the purpose of avoiding, any claim or demand from a third party that your use of the Website or the use of the Website by any person using your user name and/or password (including without limitation your participation in the posting areas or your submissions) violates any applicable law or regulation, or the rights of any third party.
We reserve the right to terminate access to this Website at any time and without notice. Further this limited license terminates automatically, without notice to you, if you breach any of these Terms of Use. Upon termination, you must immediately destroy any downloaded and printed Materials.
If you come across any breaches/violation or offensive material you must report to us at abc.secretarial@adityabirla.com
Use of Cookies
You agree and understand that the Website will automatically receive and collect certain anonymous information in standard usage logs through the Web server, including computer/computer resource-identification information obtained from "cookies" sent to your browser from a web server or other means as explained in the Privacy Policy.
Facilities Changes and Discontinuation
The Website reserves the right to discontinue or suspend, temporarily or permanently, the facilities. You agree that the Facilities Provider/ ABC Companies will not be liable to you in any manner whatsoever for any modification or discontinuance of the facilities. The format and content of this Website may change at any time. We may suspend the operation of this Website for support or maintenance work, in order to update the content or for any other reason.
ABCL, ABC Companies, and its directors, employees, associates, or other representatives shall not be liable for any damages or injury, arising out of or in connection with the use, or non-use including non-availability of the Website and also for any consequential loss or any damages caused because of non-performance of the system due to a computer virus, system failure, corruption of data, delay in operation or transmission, communication line failure, or any other reason whatsoever. The Website will not be responsible for any liability arising out of delay in providing any information on the Website.
Compliance with the Law
You agree that you will not:
- Use any robot, spider, scraper, deep link or other similar automated data gathering or extraction tools, programme, algorithm or methodology to access, acquire, copy or monitor the Website, or any portion of the Website.
- Use or attempt to use any engine, software, tool, agent, or other device or mechanism (including without limitation, browsers, spiders, robots, avatars or intelligent agents) to navigate or search the Website, other than the search engines generally available by third party web browsers
- Post or transmit any file which contains viruses, worms, Trojan horses or any other contaminating or destructive features, or that otherwise interferes with the proper working of the Website or the facilities.
- Attempt to decipher, decompile, disassemble, or reverse engineer any of the software, comprising or in any way making up a part of the Website or the facilities.
- You agree not to use the facilities for illegal purposes or for the transmission of material that is unlawful, harassing, libelous (untrue and damaging to others), invasive of another's privacy, abusive, threatening, or obscene, or that infringes the rights of others.
Restrictions on Commercial Use or Resale
Your right to use the facilities is personal to you; therefore, you agree not to resell or make any commercial use of the facilities. In addition, the Website welcomes your feedback as a user of the facilities. Any feedback you provide will become the confidential and proprietary information of the Website, and you agree that the Website may use in any manner and without limitation, all comments, suggestions, complaints, and other feedback you provide relating to the Website. The Website shall have a worldwide, royalty-free, non-exclusive, perpetual, and irrevocable right to use feedback for any purpose, including but not limited to incorporation of such feedback into the Website or other Website software or facilities.
No Endorsements
All product and facilities marks contained on or associated with the facilities that are not the Website marks are the trademarks of their respective owners. The Website would require you to respect the same. References to any such names, marks, products or facilities of third parties or hypertext links to third party sites or information does not imply the Website’s endorsement, sponsorship or recommendation of the third party, information, product or facilities.
Promotional Offers
You may receive from time to time, announcement about offers with intent to promote this Website and/or facilities/products of ABC Companies (“Promotional Offers”). The Promotional Offer(s) would always be governed by these Terms of Use plus certain additional terms and conditions, if any prescribed. The said additional terms and conditions, if prescribed, would be specific to the corresponding Promotional Offer only and shall prevail over these Terms of Use, to the extent they may be in conflict with these Terms of Use. The Website reserves the right to withdraw, discontinue, modify, extend and suspend the Promotional Offer(s) and the terms governing it, at its sole discretion.
Charges for use of Website
There are no charges or fees to be paid by you for use of this Website. However, you are responsible for all telephone access fees and/or internet service fees that may be assessed by your telephone and/or internet service provider. You further agree to pay additional charges, if any levied by Third Party Service Provider(s), for the facilities provided by them through the Website (Additional Charges).
No Endorsement
You are advised to be cautious when browsing on the internet and to use good judgment and discretion when obtaining information or transmitting information. From this Website, users may visit or be directed to third party web sites. The Website makes no effort to review the content of these web sites, nor is the Website or its licensors responsible for the validity, legality, copyright compliance, or decency of the content contained in these sites.
In addition, the Website does not endorse or control the content of any other user and is not responsible or liable for any content, even though it could be unlawful, harassing, libelous, privacy invading, abusive, threatening, harmful, vulgar, obscene or otherwise objectionable, or that it infringes or may infringe upon the intellectual property or other rights of another. You acknowledge that the Website does not pre-screen content, but that the Website will have the right (but not the obligation) in their sole discretion to refuse, edit, move or remove any content that is available via the facilities.
Electronic Communications
These Terms of Use and any notices or other communications regarding the Facilities may be provided to you electronically, and you agree to receive communications from the Website in electronic form. Electronic communications may be posted on the Website and/or delivered to your registered email address, mobile phones etc either by Facilities Provider or ABC Companies with whom the services are availed. All communications in electronic format will be considered to be in "writing". Your consent to receive communications electronically is valid until you revoke your consent by notifying of your decision to do so. If you revoke your consent to receive communications electronically, the Facilities Provider shall have the right to terminate the facilities.
Assignment
You shall not assign your rights and obligations under this Agreement to any other party. The Website may assign or delegate its rights and/or obligations under this Agreement to any other party in future, directly or indirectly, or to an affiliated or group company.
Legal Disclaimers
The information provided on or through the Website is for general guidance and information purposes only and they do not in any manner indicate any assurance or opinion of any manner whatsoever. Any information may be prone to shortcomings, defects or inaccuracies due to technical reasons. Certain information on Website may be on the basis of our own appraisal of the applicable facts, law and regulations in force at the date hereof.
The information (and opinions, if any) contained on the Website may have been obtained from public sources believed to be reliable and numerous factors may affect the information provided, which may or may not have been taken into account. The information provided may therefore vary (significantly) from information obtained from other sources or other market participants. Any reference to past performance in the information should not be taken as an indication of future performance. The information is dependent on various assumptions, individual preferences and other factors and thus, results or analyses cannot be construed to be entirely accurate and may not be suitable for all categories of users. Hence, they should not be solely relied on when making investment decisions. Your investment or financial decision shall always be at your own discretion and based on your independent research; and nothing contained on the Website or in any information would construe ABCL/ABC Companies or any of its employees/authorized representative as having been in any way involved in your decision making process. Any information and commentaries provided on the Website are not meant to be an endorsement or offering of any stock or investment advice.
Nothing contained herein is to be construed as a recommendation to use any product, process, equipment or formulation, in conflict with any patent, or otherwise and Facilities Provider / ABCL/ABC Companies makes no representation or warranty, express or implied that, the use thereof will not infringe any patent, or otherwise. Information on this Website sourced from experts or third party service providers, which may also include reference to any ABCL Affiliate. However, any such information shall not be construed to represent that they belong or represent or are endorsed by the views of the Facilities Provider or ABC Companies. Any information provided or sourced from ABCL Affiliate belongs to them. ABCL is an independent entity and such information from any ABCL Affiliate are not in any manner intended or to be construed as being endorsed by ABCL or Facilities Provider. The information does not constitute investment or financial advice or advice to buy or sell, or to endorse or solicitation to buy or sell any securities or other financial instrument for any reason whatsoever. Nothing on the Website or information is intended to constitute legal, tax or investment advice, or an opinion regarding the appropriateness of any investment or a solicitation of any type. Investment in the securities market and any financial instruments are inherently risky and you shall always assume complete and full responsibility for the outcomes of all the financial or investment decisions that you make, including but not limited to loss of capital. You are therefore advised to obtain your own applicable legal, accounting, tax or other professional advice or facilities before taking or considering an investment or financial decision.
No Solicitation
No Information at this Website shall constitute an invitation to invest in ABCL or any ABC Companies. These are meant for general information only or to meet statutory requirements or disclosures. ABCL or any of its employees are in no way liable for the use of the information by you, when making any decision or investing or trading through any investment vehicles or ABC Companies, or any other third party which may be engaged in offering of these services.
The information contained on this Website does not represent and should not be used to construe (i) the terms on which a new transaction would be entered into by ABCL or ABC Companies, (ii) the terms on which any existing transactions could be unwound by ABCL or ABC Companies, (iii) the calculation or estimate of an amount that would be payable following an early termination of any past/existing transactions or (iv) the valuations given to any transactions by ABCL or ABC Companies in their books of account for financial reporting, credit or risk management purposes.
Statutory Disclosure
ABCL and ABC Companies are engaged in a broad spectrum of activities in the financial services sectors. You understand and acknowledge that Aditya Birla Money Limited (‘ABML’), Aditya Birla Finance Limited (‘ABFL’) and Aditya Birla Sun Life Asset Management Company Limited and trustees and sponsor of Aditya Birla Sun Life Mutual Fund (‘ABSLMF’) are group companies and ABML / ABFL also acts as a distributor of ABSLMF. Any recommendation or reference of schemes of ABSLMF if any made or referred on the Website, the same is based on the standard evaluation and selection process, which would apply uniformly for all mutual fund schemes. You are free to choose the execution facilities in the manner deemed fit and proper and no commission will be paid by ABSLMF to ABML / ABFL if you choose to execute a transaction with ABSLMF on the Website, unless otherwise agreed by you and ABML/ABFL separately. Information about ABML/ABFL, its businesses and the details of commission structure receivable from asset management companies to ABML/ABFL, are also available on their respective Website.
Similarly Aditya Birla Money Insurance Advisory Services Limited and Aditya Birla Insurance Brokers Limited are insurance intermediaries and engaged in the distribution of Insurance Products and it may services may include products of Aditya Birla Sun Life Insurance Company Limited and Aditya Birla Health Insurance Company Limited. However there is no conflict on these services and commissions if any payable are in accordance of the extant regulations.
Force Majeure
The Facilities Provider, ABC Companies and any of its Third Party Service Providers shall not be liable for any delay or failure in performance resulting directly or indirectly from acts of nature, forces, or causes beyond their reasonable control, including, without limitation, Internet failures, computer equipment failures, telecommunication equipment failures, other equipment failures, electrical power failures, strikes, virus, other malicious computer code, hacking, labour disputes, riots, insurrections, civil disturbances, shortages of labour or materials, fires, flood, storms, explosions, acts of God, war, earthquake, governmental actions, orders of domestic or foreign courts or tribunals, non-performance of third parties, or loss of or fluctuations in heat, light, or air conditioning.
Indemnification
You agree to protect and fully compensate Facilities Provider, ABCL, ABC Companies, subsidiaries, licensors, suppliers and facilities providers, employees, officers and directors, from any and all third party claims, liability, damages, expenses and costs (including but not limited to reasonable attorneys fees) caused by or arising from your use of the facilities, your violation of the Terms of Use or your infringement, or infringement by any other user of your account, of any intellectual property or other right of anyone.
No Waiver
The Facilities Provider, ABC Companies or any of its third party service providers and processor bank/merchants etc. shall not be deemed to have waived any of its/their rights or remedies hereunder, unless such waiver is in writing. No delay or omission on the part of Facilities Providers and ABC Companies, in exercising any rights or remedies shall operate as a waiver of such rights or remedies or any other rights or remedies. A waiver on any one occasion shall not be construed as a bar or waiver of any rights or remedies on future occasions.
Exclusive Agreement
You agree that these Terms of Use are the complete and exclusive statement of agreement supersede any proposal or prior agreement, oral or written, and any other communications between you and the Facilities Provider and its Third Party Service Providers or processor bank/merchants relating to the subject matter of these Terms of Use. These Terms of Use, as the same may be amended from time to time, will prevail over any subsequent oral communications between you and the Website and/or the processor bank.
Termination
Either party can terminate this Agreement by notifying the other party in writing. Upon such termination You will not be able to use the facilities of this Website.
Governing Law and Jurisdiction
The Website specifically prohibits you from usage of any of its facilities in any countries or jurisdictions that do not corroborate to all stipulations of these Terms of Use. The Website is specifically for users in the territory of India. In case of any dispute, either judicial or quasi-judicial, the same will be subject to the laws of India, with the courts in Mumbai having exclusive jurisdiction.
These Terms and Conditions are governed by and to be interpreted in accordance with laws of India, without regard to the choice or conflicts of law provisions of any jurisdiction. You agree, in the event of any dispute arising in relation to these Terms and Conditions or any dispute arising in relation to the Website whether in contract or tort or otherwise, to submit to the jurisdiction of the courts located at Mumbai, India for the resolution of all such disputes.
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