SEBI Brings New Rules For Storage Of IPO Documents By Merchant Bankers

The Securities and Exchange Board of India on Thursday announced new rules for merchant bankers to store due diligence records related to initial public offerings. 

From next month onwards, these documents are required to be uploaded and maintained electronically on online platform provided by the stock exchanges, SEBI said in a circular.

The merchant bankers will have to maintain records related to due diligence in both pre-IPO and post-IPO activities. These documents must be preserved for a "minimum period of five years", in line with the SEBI (Merchant Bankers) Regulations, 1992, the circular added.

The stock exchanges have developed a "document repository platform" where merchant bankers can securely upload and store these records, it noted.

The documents on the platform have to be uploaded within specific timelines. Starting Jan. 1, 2025, the documents must be uploaded within 20 days of filing a draft offer document or listing with the stock exchange, SEBI said, adding that this timeline will be shortened to 10 days from Apr. 1, 2025.

Each merchant banker will access the platform using individual login credentials to ensure the security and confidentiality of the documents. However, the uploaded documents will be made available to SEBI for supervisory purposes.

The new rules will apply to draft IPO documents filed from Jan. 1, 2025, for listings on both mainboard and SME exchanges.