The Securities and Exchange Board of India (SEBI) has issued new guidelines to simplify and secure public issue processes. On December 5, SEBI asked merchant bankers to upload and maintain key documents related to public issues on a new repository platform managed by stock exchanges. This initiative is aimed at improving transparency, efficiency, and regulatory oversight in the Indian capital markets.
The new platform will allow merchant bankers to electronically upload and maintain documents like due diligence reports, financial statements, and other public issue-related records. SEBI has emphasized that the uploaded documents must be complete, legible, and relevant for regulatory purposes.
Merchant bankers will have access to these documents using their login credentials. However, SEBI will also have access to the platform to carry out its supervisory functions. Stock exchanges, in collaboration with the Association of Investment Bankers of India (AIBI), will provide a list of documents and detailed instructions for uploading.
Implementation Timeline
SEBI has set clear deadlines for the implementation of the repository platform:
- January 1, 2025: Merchant bankers must upload documents within 20 days of filing the draft offer document with SEBI or stock exchanges and within 20 days of the listing date.
- April 1, 2025: The timeline will be reduced to 10 days for both uploading after filing the draft offer document and after listing.
This move aims to streamline record-keeping and enhance accessibility for regulatory and market participants.
In a separate announcement, SEBI has issued a caution to investors regarding unregistered online platforms offering unlisted debt securities. These platforms are not regulated, lack investor protection mechanisms, and do not provide a proper grievance redressal system.
SEBI emphasized that providing unlisted securities to over 200 investors breaches the Companies Act, 2013, along with SEBI’s guidelines. Such activity is treated as a “deemed public issue,” which requires regulatory approval.
To protect investors, SEBI recently issued an interim order against certain unregistered platforms. The regulator emphasized that disputes arising from transactions on these platforms will not be covered under SEBI’s grievance redress mechanisms like SCORES (SEBI Complaints Redress System).
SEBI has urged investors to use only authorized online bond platforms for investing in listed debt securities. These platforms are run by stockbrokers registered with recognized stock exchanges like the BSE and NSE. Investors can find a list of authorized Online Bond Platform Providers (OBPPs) on SEBI’s official website.
These steps by SEBI reflect its commitment to enhancing transparency, protecting investors, and digitizing India’s capital markets. By mandating the use of an online repository platform, SEBI is making public issue processes more efficient and secure. Simultaneously, the warning about unregistered platforms highlights SEBI’s focus on safeguarding investor interests in the rapidly evolving digital space.
