On Dec. 5, IND SEBI wrote re merchant banking, issuances to public.
IND SEBI said merchant bankers must maintain records, documents re due diligence during pre-issue, post-issue activities, per SEBI (merchant bankers) regulations, 1992.
Overview of Circular
These records must be preserved for at least five years as per regulation 16.
Stock exchanges have introduced an online document repository platform to help merchant bankers upload and maintain these records electronically for easier access.
Merchant bankers must upload due diligence documents to repository platform, notify relevant stock exchanges where issuer company’s securities are proposed to be listed.
Stock exchanges will provide merchant bankers with a list of required documents and upload guidance in consultation with Association of Investment Bankers of India.
Starting Jan. 1, 2025, documents must be uploaded within 20 days of filing the draft offer document with the IND SEBI/stock exchanges, and within 20 days of listing.
From Apr. 1, 2025, this timeline reduces to 10 days; the repository is accessible only to merchant bankers via login but must be available for IND SEBI's supervision.
Merchant bankers must ensure that documents are relevant, complete, and legible.
Effectiveness
The circular applies to draft offer documents filed on or after Jan. 1, 2025.
