Public Offering of Securities Insurance (POSI)

Ring-fence prospectus liability for IPOs, secondary offerings and private placements.

Protect Your Capital-Raising Transaction
India’s capital markets boom amplifies scrutiny of offering documents. XtraTrust’s POSI policy isolates long-tail securities liabilities—safeguarding issuers, directors and underwriters.
Prospectus Liability
7-Year Policy Term
Single Premium
Why Take a POSI Policy?

Ring-Fence Liability

Significant and long-tail prospectus exposures are isolated in a standalone limit—preserving existing D&O programmes.

Transaction-Specific Protection

Tailored wording aligns precisely with the prospectus and deal timetable, covering signatories, selling shareholders and underwriters if required.

Capitalisable Premium

One-off premium can usually be capitalised as a transaction cost and funded from offer proceeds.

Long-Term Cover

Policy periods up to 84 months address the fact that securities claims often emerge years after listing.

Key Coverage Features

Prospectus Liability

Losses from actual or alleged untrue or misleading statements in any public offering document.

Underwriter Liability

Extends to underwriters’ statutory exposures where contractually required.

Defence Costs

Advanced payment of legal fees, investigation expenses and expert costs.

Controlling & Selling Shareholders

Optional protection for selling shareholders’ prospectus liability.

Punitive & Exemplary Damages

When insurable by law, the policy responds to exemplary awards related to securities violations.

Key Exclusions
Prior claims or known circumstances
Bodily injury or property damage
Dishonest or fraudulent acts
Major shareholder claims (customisable carve-backs)
POSI Illustration
Who Can Buy a POSI Policy?
Companies launching IPOs on Indian or overseas exchanges
Issuers conducting secondary or follow-on public offerings
Firms raising capital via private placements needing prospectus-style documentation
The XtraTrust Advantage

Capital Markets Expertise

Decades of advising Indian issuers and global banks on prospectus liability exposures.

Optimal Premium Structuring

Leverage of leading reinsurers to secure competitive single-premium solutions.

Dedicated Claims Panel

24/7 response with top-tier securities defence counsel to minimise reputational impact.

End-to-End Transaction Support

Close collaboration with legal, financial and underwriting teams from draft RHP to listing.

POSI Claim Process

Incident Notification

Notify XtraTrust on first awareness of a potential securities claim or regulator investigation.

Panel Counsel Engagement

We appoint specialist securities lawyers to defend directors and the issuer.

Advance of Defence Costs

Insurer funds reasonable legal and expert costs as they are incurred, protecting cash flow.

Settlement & Resolution

XtraTrust negotiates optimal settlement or court defence, preserving reputation and balance sheet.

Pro-Tips for Optimal POSI Coverage
Start POSI discussions early—ideally during red-herring drafting—to avoid last-minute pricing pressures.
Match policy limit to projected offering size and investor composition to prevent under-insurance.
Consider separate limit for selling shareholders to avoid erosion of issuer protection.
Maintain robust disclosure controls and procedures; these support underwriting and claim defensibility.
POSI FAQs

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