Key Takeaways: - Post issue activities - Issue & Transaction Reporting - Migration from main board to SME exchange

1. What are the steps to be taken
after issue by SME?
CS Meenakshi Jayaraman

2. Research Credits
Iswariya BS
Jitesh

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

5. Post issue procedures

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

15. Thank You!
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