This article analyses the SME framework under SEBI (ICDR) Regulations, 2018, focusing specifically on the implications of corporate governance provisions under SEBI (LODR) Regulations, 2015, for SME companies. It highlights the enhancement of both pre-listing and post-listing regulations for SMEs. The proposed standards seek to foster market transparency, protect investors, and support the sustainable growth of SME businesses. The measures proposed by SEBI to achieve these goals are detailed below:
‣ Increase in Minimum Application Size for SME IPOs to Align with Market Growth
‣ Alignment of Allotment Methodology for Non-Institutional Investors in SME IPOs with Main Board IPOs
‣ Increase in Minimum Number of Allottees for SME Public Issues to Enhance Market Liquidity
‣ Restriction on Offer for Sale in SME IPOs Capped at 20% of the Issue Size
‣ Mandatory Appointment of Monitoring Agency for Issue Size Exceeding Rs 20 Crore
‣ Mandatory Disclosure of Merchant Banker Fees
