Public Offering Securities Insurance (POSI) provides comprehensive protection to companies, their directors, officers, and senior management against legal liabilities stemming from misstatements, omissions, or inaccuracies in public offering documents such as prospectuses, red herring prospectuses, or other related materials.
The policy covers defence costs, settlements, and damages arising from investor or regulatory claims, subject to applicable terms and conditions. It extends protection to past, present, and future directors and officers, with the option of run-off cover post-listing.
POSI insurance is typically arranged for IPOs, FPOs, rights issues, QIPs, or debt offerings, supporting compliance with the SEBI Act and the Companies Act, 2013, while strengthening investor confidence and enhancing corporate governance credibility.
