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 with transaction-specific protection that preserves existing D&O programmes.
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.
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
Who Can Buy a POSI Policy?
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 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.
Frequently Asked Questions
Other Financial Lines Products
Ready to Protect Your Offering?
Get a customized POSI quote. No hidden fees, no obligations.