What are the extra compliance requirements for SME IPOs compared to the main board listing?

Unlike main board IPOs, SME IPOs have a certain set of additional requirements regarding underwriting, market making, etc. to be eligible to issue an IPO. The additional compliance requirements for SMEs listing are as follows:

• 100% underwriting of the SME IPO issue.
• 15% underwriting should be done from the merchant banker’s account.
• Merchant bankers have to undertake market-making for a period of 3 years.