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How DBR Affects You
Benefits of DBR
You may at this point be wondering what benefits entail from the shift from MBR to DBR. Well, the shift to DBR would result in:
- A more efficient fund-raising process;
- Increased investor protection and awareness; and
- Greater flexibility and innovation
Because DBR relies on higher standards of disclosure and accountability by issuers and due diligence on the part of investors, it provides for greater transparency which in turn allows greater market discipline to be imposed on the pricing and valuation of securities. The ultimate result is a more efficient and effective fund-raising process that is market-driven.DBR also increases investor protection by inculcating higher standards of accountability among issuers and their advisers by shifting the onus for statements and disclosure onto them and improving their sense of corporate responsibility and due-diligence standards.Finally, DBR allows for greater flexibility and innovation to facilitate market development as regulations covering issues, offers and listing would be less prescriptive and would focus on information disclosure regarding a particular proposal rather than the structure of the proposal itself.
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