Compliances for SME IPO:

This article would be a brief synopsis for all the Legal and ROC Compliances for SME IPO.

Once the Company is formed, Company is required to appoint the auditor within 30 days and pass the necessary resolutions required, pay the stamp duty of the shares, allot the shares to the subscribers.

Every Limited Company who is going for listing needs to have Managing Director, Whole time director, CFO, Non-executive Independent directors as well a Company Secretary.

Special and Board Resolutions are passed for appointing the said People. MGT-14 Form is filed for the same for appointing the KMP on board.

MR-1 Form is to be filed for the Whole time agreements made and the same is to be for all the Managing and Whole time directors respectively.  These agreements need to be drafted properly and to be filed with ROC.

All the required sections of Company law and SEBI are to be considered properly. For eg: Requirement of Non-executive directors for formation of various Committees like Audit Committee, Nomination Committee and a lot more.

Borrowing power limits and IPO Authorization approval has to be taken from the shareholders and the same is to be filed with ROC in form MGT-14.

If Private Placement and Preferential allotment is required before IPO, then PAS-3 Form is to filed with ROC with all the attachments as required.

From the day the Company is formed till the date it files the Draft Prospectus, lot of Resolutions and forms are required to filed on timely basis which are in adherence to Company Law, SEBI Guidelines and all the applicable laws and Regulations.

Merchant banker certification for the valuation of shares. CDSL, NSDL, RTA Documentation required and the Board resolutions for the same.  All the shares are to be in DEMAT Form.

Opening of separate ESCROW for parking of funds.

Financials of the Company to be prepared and certified by Chartered Accountant.

Preparation of Draft Prospectus requires various documents like KYC of directors, Brief background of directors, details of the shares issues, financials of Companies and many more.

The above information shared is just a brief background, the entire process is very lengthy and time consuming which involves preparation of Resolutions, Form filing, various documentation and many more.

Detailed explanation would be shared in my coming article which would be on private placement and preferential allotment of shares.

The content is posted only for sharing knowledge. Author is not responsible for any damage caused. For any queries, formats, advisory or any other matter, author can be reached at [email protected] or +91 9819244185.

Author Bio

Qualification: CA in Practice
Company: Co-founder of Budding Business & Makwana Sweta & Associates
Location: Mumbai, Maharashtra, India
Member Since: 20 Aug 2017 | Total Posts: 62
A Practicing Chartered Accountant with over 4 years of rich experience in Company Law, Audits, Accounts & taxation. She is a writer at her own blog She is keen in streamlining business accounts of the Company and provide Startup consultancy. View Full Profile

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June 2021