SEBI Mandates Online Document Repository for Merchant Bankers Starting Jan 2025
6 Dec 2024 12:10 PM IST
Under the SEBI Merchant Bankers Regulations, 1992, merchant bankers must preserve public issue records for a minimum of five years. (File image)
Mumbai: The Securities and Exchange Board of India (SEBI) has directed all merchant bankers to electronically upload records and documents related to due diligence in public issue activities on a dedicated Document Repository platform set up by stock exchanges. This requirement applies to draft offer documents filed on or after January 1, 2025, for listing on both mainboard and SME exchanges.
The Document Repository platform, established to enhance transparency and streamline the public issue process, will allow merchant bankers to maintain and manage records digitally. "This platform aims to provide easier access to documents related to the public issue process, which are required to be preserved by merchant bankers," SEBI stated in its circular.
Under the SEBI Merchant Bankers Regulations, 1992, merchant bankers must preserve public issue records for a minimum of five years. According to the new guidelines, from January 1, 2025, merchant bankers must upload the required documents within 20 days of filing a draft offer document with SEBI or stock exchanges and again within 20 days after the listing date.
From April 1, 2025, the timeline will tighten, requiring uploads within 10 days of filing a draft offer document and within 10 days of listing.
"This step will be demanding for merchant bankers but will significantly enhance transparency in the IPO process," said Makarand M Joshi, founder of MMJC and Associates, a corporate compliance firm.
Stock exchanges, in consultation with the Association of Investment Bankers of India (AIBI), have prepared an indicative list of documents to be uploaded and will guide merchant bankers on the process. The move is expected to bring greater clarity and efficiency to the public issue ecosystem.
The Document Repository platform, established to enhance transparency and streamline the public issue process, will allow merchant bankers to maintain and manage records digitally. "This platform aims to provide easier access to documents related to the public issue process, which are required to be preserved by merchant bankers," SEBI stated in its circular.
Under the SEBI Merchant Bankers Regulations, 1992, merchant bankers must preserve public issue records for a minimum of five years. According to the new guidelines, from January 1, 2025, merchant bankers must upload the required documents within 20 days of filing a draft offer document with SEBI or stock exchanges and again within 20 days after the listing date.
From April 1, 2025, the timeline will tighten, requiring uploads within 10 days of filing a draft offer document and within 10 days of listing.
"This step will be demanding for merchant bankers but will significantly enhance transparency in the IPO process," said Makarand M Joshi, founder of MMJC and Associates, a corporate compliance firm.
Stock exchanges, in consultation with the Association of Investment Bankers of India (AIBI), have prepared an indicative list of documents to be uploaded and will guide merchant bankers on the process. The move is expected to bring greater clarity and efficiency to the public issue ecosystem.
( Source : Deccan Chronicle )
Next Story
