What are the steps to be taken after issue by SME?
- 1. What are the steps to be taken after issue by SME? CS Meenakshi Jayaraman
- 3. Legends Used ASBA Application Supported by Blocked Amount ICDR Issue of Capital and Disclosure Requirements RII Retail Individual Investor SE Stock Exchange SEBI Securities Exchange Board of India SME Small and Medium Exchange
- 4. Presentation Schema Post issue procedures Migration from Main Board to SME Exchange
- 6. Allotment Procedure No allotment if the number of allottees is < 50 in an IPO Allotment shall not be made in excess of the specified securities offered, except in case of oversubscription* *an allotment of not more than 10% of the net offer to public may be made for making allotment in minimum lots Allotment of specified securities to applicants other than RIIs and anchor investors shall be on proportionate basis within the specified investor categories and the number of securities allotted shall be rounded off to the nearest integer* *Subject to minimum allotment equal to the minimum application size
- 7. Contd. The issuer shall undertake to pay interest at the rate of 15% p.a. within such time as disclosed in the offer document in the event of non-compliance to allotment / refund within the stipulated period Registrars to the issue, in consultation with the issuer and lead manager(s) shall ensure that the specified securities Are allotted application monies are refunded or unblocked within such time as may be specified by the Board
- 8. Post Issue Advertisement The advertisement giving details relating to Such advertisement shall be released within 10 days from the date of completion of the various activities in at least 1 English and 1 Hindi national daily newspapers with wide circulation and 1 regional language daily newspaper with wide circulation at the place where registered office of the issuer is situated It shall also be placed on the website of the stock exchanges. • Subscription • Basis of allotment • Number, value and percentage of all applications including ASBA • Number, value and percentage of successful allottees for all applications including ASBA • Date of completion of dispatch of refund orders to self certified syndicate banks by the Registrar • Date of credit of specified securities • Date of filing of listing application The lead manager shall ensure that advertisement contains details relating to
- 9. Lead Manager - Responsibilities The advertisement giving details relating to Monitoring of redressal of investor grievances which arose from issue related activities Co-ordination with registrars and other intermediaries at regular intervals Act of omission / commission on the part of intermediaries noticed by Lead Manager shall be duly reported to SEBI If there is a devolvement on underwriters, to ensure that the notice for devolvement containing the obligation of underwriters is issued within a period of 10 days from the date of closure of the issue Furnishing details of underwriters who have failed to meet their underwriting development to SEBI in the below format Sr. No. Name of the underwriter Amount underwritten Amount devolved Date of issue of notice of devolvement, if any Reasons for not accepting devolvement
- 10. Dealing with Subscription Money Lead Manager confirmation to Banker to the issue Confirming that all the listing & trading approvals are completed either to: Release the money to the issuer or Release money for refund, in case of failure to issue Failure to obtain listing / trading permission Refund of entire money within 7 days of intimation from exchange rejecting the application If such money is not repaid within 8 days after issuer becomes liable to repay Issuer & every director (officer in default) shall be jointly and severally liable to repay with 15% interest p.a.
- 11. Post-issue reports Submission of final post-issue report (in the format prescribed in SEBI (ICDR) Regulations) by Lead Manager along with a due diligence certificate Due diligence certificate must confirm the following 3 items: Post-issue report with due diligence certificate shall be submitted within 7 days of the date of finalization of basis of allotment / within 7 days of refund of money in case of failure of issue Certificate for locked in securities have been stamped as “non transferable” indicating the period for locked- in specified securities / details / intimation to depository in case of demat form Specified securities included as minimum promoters’ contribution & specified securities in excess of minimum promoters’ contribution have been locked-in Lock-in of specified securities held by persons other than promoters have been duly complied with
- 12. Promoters and promoter group Listing If any listed issuer issues specified securities as per Chapter IX, it shall migrate the specified securities already listed on any recognised SE(s) to the SME exchange Issuer shall ensure that all transactions in securities by the promoters and promoter group during the below mentioned period to be reported to the SE, within 24 hours of such transactions Between the date of filing of the draft offer document / offer document And the date of closure of the issue
- 13. Migration from Main Board to SME Exchange
- 14. Migration from Main Board to SME Exchange • A listed issuer whose post-issue capital is less than Rs.25 crores may migrate its specified securities to SME exchange Listed Issuer (in Main Board) • If shareholders approve by passing a special resolution through postal ballot and • Issuer fulfilling the eligibility criteria for listing laid down by SME exchange Migration to SME Exchange
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