The Securities and Exchange Board of India (SEBI) has directed merchant bankers to upload pre-IPO and post-IPO due diligence documents to a centralized document repository platform managed by stock exchanges. This move aims to enhance the efficiency and accessibility of records related to public issues while ensuring regulatory supervision.
Key Details of the Directive
1. Purpose of the Platform
- To enable merchant bankers to electronically upload and maintain documents related to pre-IPO and post-IPO management.
- Provides SEBI with streamlined access to these documents for regulatory oversight.
- Facilitates efficient record-keeping and reduces the administrative burden.
2. Implementation Timeline
Merchant bankers must adhere to specific deadlines based on the circular issued:
- From January 1, 2025:
- Upload documents within 20 days of filing the draft offer document with SEBI or stock exchanges.
- Upload documents within 20 days of the listing date.
- From April 1, 2025:
- Reduced timeline to 10 days for both milestones.
3. Process Guidelines
- Stock exchanges will notify merchant bankers of the indicative list of documents to be uploaded, prepared in consultation with the Association of Investment Bankers of India (AIBI).
- Documents must be complete, relevant, and legible and uploaded via merchant bankers’ individual login credentials.
Implications of the Move
- Enhanced Transparency: Centralized documentation ensures easier access and monitoring of due diligence processes.
- Streamlined Oversight: Regulatory supervision is simplified, ensuring compliance with public issue regulations.
- Improved Efficiency: Electronic record-keeping reduces paperwork and facilitates faster processing.
- Accountability: Merchant bankers are required to maintain high standards of accuracy and relevance for all uploaded documents.
Conclusion
SEBI’s directive to create a centralized repository for pre-IPO and post-IPO documents marks a step toward digitizing and streamlining India’s capital markets. With its phased implementation in 2025, the system is set to enhance transparency, regulatory compliance, and efficiency in public issue processes.
