Important Regulatory Update: SEBI Enhancements in the Bidding Process for SME Public Issues

Recent regulatory updates from the Securities and Exchange Board of India (SEBI) aim to improve the bidding process for SME Public Issues. These updates, in accordance with SEBI guidelines and the Exchange, introduce several mandatory changes in the bidding and processing of SME Public Issues to enhance transparency and efficiency.

Key Changes

Rejection of Duplicate PAN Bids: Multiple bids with the same PAN (Permanent Account Number) in different categories, the same category, or with different application numbers will be rejected upfront on the Exchange platform.

Exceptions:

• Individual Category (IND): Bidding by individual investors in reserved categories (Employee, Shareholder, Policyholder) along with the Individual category using the same PAN will be permitted.
• QIB Category: Bidding with multiple applications using the same PAN and the same category but with different demat details will be allowed.

These changes are aimed at ensuring a fair and transparent bidding process, preventing any discrepancies, and promoting the overall efficiency of SME IPOs.