Introduction
Guidance for Merchant Bankers on SME IPO Offer Documents by BSE has been prepared to assist merchant bankers in the preparation and submission of offer documents for SME Initial Public Offerings (IPOs). The guidance provided herein outlines the key regulatory requirements, compliance standards, and best practices that merchant bankers must adhere to when preparing the offer documents.
It aims to help ensure that the information presented to potential investors is clear. this guidance will help merchant bankers navigate complexities of SME IPO. Some key point which a merchant banker should remember while submitting offer document for SME IPO are as follows.
This guidance is in addition to drafting guidelines provided by BSE to merchant bankers by way of a separate circular.
Key Highlights
| Point of guidance | Guidance |
| Disclosure requirements | Follow Schedule VI of SEBI ICDR Regulations, 2018, for mandatory disclosures.
Include a “Definitions and Abbreviations” section clearly define and explain all technical terms. |
| Compliance-Related Disclosures |
Disclose any past non-compliance with laws and corrective actions in the “Risk Factors” section. Mention whether compounding applications have been filed with authorities. |
Appoint directors per Section 149(6) of the Companies Act, 2013. Ensure they are registered with the Indian Institute of Corporate Affairs (IICA). |
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Verify compliance of statutory committees like the Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee with the Companies Act, 2013. |
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Ensure the partnership firm was registered under the Indian Partnership Act, 1932, before conversion |
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| Business Operations Disclosures |
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| Due Diligence & Other Disclosures |
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| Draft Offer Document Rejections |
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Disclaimer: This article provides general information existing at the time of preparation and we take no responsibility to update it with the subsequent changes in the law. The article is intended as a news update and Affluence Advisory neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this article. It is recommended that professional advice be taken based on specific facts and circumstances. This article does not substitute the need to refer to the original pronouncement.
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