SEBI Introduces Online Repository for Merchant Bankers’ Due Diligence Documents - MMJC

Date: December 5, 2024

The Securities and Exchange Board of India (SEBI) has rolled out a significant initiative to simplify how Merchant Bankers handle their due diligence records during public issues.

To ensure smoother record maintenance, SEBI is introducing an online Document Repository platform managed by stock exchanges. This platform allows Merchant Bankers to upload and store their records electronically, making it easier to maintain, access, and share documents related to public issues.

Applicability

The new guidelines apply to all draft offer documents filed on or after January 1, 2025, for companies listing on both Mainboard and SME exchanges.

What’s New?

Here’s a quick rundown of the new process:

1. Electronic Upload of Records:

• Merchant Bankers are now required to upload due diligence records and documents (pre-issue and post-issue) onto the Document Repository platform.

2. Platform Accessibility:

• The platform is accessible only to the respective Merchant Banker using secure individual login credentials.
• SEBI may access the records for supervisory purposes.

3. Timelines for Uploads:

• From January 1, 2025: Upload documents within 20 days of filing the draft offer document or listing on stock exchanges.
• From April 1, 2025: The timeline is reduced to 10 days for both actions.

4. Coordinated Efforts:

• Merchant Bankers must upload the records to one stock exchange and inform others where the issuer company is listing.

5. Document Guidelines:

• All uploaded documents must be relevant, complete, and legible to ensure proper record-keeping.

Learn More

For more information, check out the full circular on SEBI’s website at https://www.sebi.gov.in/legal/circulars/dec-2024/repository-of-documents-relied-upon-by-merchant-bankers-during-due-diligence-process-in-public-issues_89321.html