Key pre-listing requirements include DRHP filing, board governance, PIT compliance, related-party disclosures, and LODR readiness.
Pre-Listing Compliance Framework for IPOs
Companies preparing for an IPO must comply with a comprehensive set of pre-listing requirements beyond drafting the Draft Red Herring Prospectus (DRHP). These include adopting SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR) governance standards, establishing a vigil mechanism, and constituting required board committees.
Other critical steps involve implementing the Policy on Prevention of Insider Trading (PIT), disclosing related-party transactions, conducting shareholding pattern freezes, and ensuring registrar and transfer agent (RTA) readiness. Entities must also undergo SDD (Self-Declared Disclosures) and align internal systems with stock exchange requirements.
Legal counsel must conduct due diligence early to identify gaps in corporate governance and disclosure practices. Proactive compliance reduces scrutiny delays and strengthens investor confidence during the public issue process.
Citations
- SEBI (LODR) Regulations, 2015