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SME IPO Intermediaries 

An SME IPO (Initial Public Offering) is a complex process involving various intermediaries who play crucial roles in ensuring a smooth and successful listing. Here's a breakdown of the key SME IPO intermediaries

  • Merchant Banker (Lead Manager): The central figure, the merchant banker acts as your advisor and guide throughout the IPO journey. Responsibilities include:

  1. Eligibility assessment and selection

  2. Due diligence and document preparation

  3. Stock exchange selection and application

  4. Prospectus drafting and SEBI filing

  5. Pre-IPO marketing and investor roadshows

  6. Price discovery and book building

  7. Allotment and listing process coordination

  8. Registrar and Transfer Agent (RTA): Manages the share issuance and registry, handling tasks like:

  9. Dematerialization of shares

  10. Account opening and maintenance for shareholders

  11. Dividend distribution and record keeping

  12. Processing transfers and communication

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  • Stock Exchange (BSE SME or NSE Emerge): Provides the platform for trading your company's shares, offering:

  1. Listing infrastructure and trading platform

  2. Regulatory compliance and market oversight

  3. Market data dissemination

  • Depository Participant (DP): Acts as a link between investors and the depository, facilitating:

    1. Demat account opening for investors

    2. Holding of shares in electronic form

    3. Trade execution and settlement

  • Underwriter (Optional): Provides a safety net by guaranteeing a minimum subscription amount for the IPO, ensuring the company raises a specific amount of capital.

  • Legal Counsel: Ensures legal compliance throughout the process, including:

  1. Drafting legal documents like the prospectus and agreements

  2. Advising on regulatory requirements

  • Chartered Accountant (CA): Audits the company's financial statements for accuracy and adherence to accounting standards.

  • Company Secretary (CS): Oversees corporate governance aspects of the IPO process, ensuring:

  1. Compliance with Companies Act regulations

  2. Timely filing of documents and disclosures

  • Compliance Officer: Monitors and ensures adherence to SEBI regulations and listing requirements throughout the IPO and beyond.

  • Market Maker (Mandatory): Creates liquidity for the company's shares on the SME platform by actively buying and selling them within a specified price range.

 

By working effectively with these intermediaries, your SME can navigate the complexities of an IPO and achieve a successful public listing.

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