An Initial Public Offering (IPO) is a transformational event for any company—it transitions from being privately held to publicly traded. While the benefits of raising capital, increased brand visibility, and liquidity for stakeholders are immense, the compliance burden before, during, and after the IPO is equally substantial.
This is where experienced Chartered Accountants (CAs) play a crucial role. Their deep understanding of financial reporting standards, SEBI regulations, corporate governance, tax implications, and post-listing obligations ensures a seamless and compliant IPO journey.
In this article, we explain the scope, relevance, and process of IPO compliance services delivered by expert Chartered Accountants.
IPO compliance is not just about filing forms—it's about instilling trust among investors, regulators, and markets. Any discrepancy or delay can result in penalties, listing delays, or even withdrawal of IPO plans. SEBI and the stock exchanges (NSE/BSE) demand full transparency, accuracy, and adherence to disclosure norms.
With the assistance of qualified CAs, companies can stay aligned with the regulatory framework at every step.
Conversion of financials into Ind AS (if not already done)
Restatement of past financials for the last 3 or more years as per SEBI ICDR regulations
Ensuring audit trail, notes, segment disclosures, and reconciliations
Handling queries from merchant bankers or stock exchanges
Evaluation of existing internal controls
Implementation of control mechanisms in line with ICAI & SEBI standards
Preparing the company to meet corporate governance norms post-listing
Pre-IPO tax planning to optimise holding structure
Advisory on capital gains, MAT, dividend distribution, and ESOP taxation
Ensuring compliance with GST, TDS, and income tax provisions
Updating and verifying records with the Registrar of Companies (ROC)
Ensuring accurate shareholding pattern, authorised capital, and MoA/AoA updates
Board and shareholder resolutions in proper formats
Data room creation for investor and underwriter due diligence
Drafting of statutory documents: DRHP (Draft Red Herring Prospectus), agreements, declarations
Representation before statutory authorities as needed
Assistance in preparation and filing of DRHP and RHP
Compliance with SEBI (ICDR) Regulations, 2018
Coordination with merchant bankers, legal counsel, and registrars
Structuring of Employee Stock Option Plans
Compliance with SEBI (Share Based Employee Benefits) Regulations
Tax and accounting advisory related to employee benefits
Quarterly reporting and disclosures as per Listing Obligations & Disclosure Requirements (LODR)
Preparation of financial results, limited review reports, audit reports
Support in annual general meetings, investor relations, and share transfer records
| Phase | CA’s Involvement |
|---|---|
| Pre-IPO | Internal audit, tax planning, ROC cleanup, due diligence |
| Filing Phase | DRHP support, SEBI compliance, financial restatements |
| Listing Phase | LODR adherence, quarterly financials, investor reports |
| Post-listing | Annual compliance, audit, shareholding reconciliation |
Seasoned CAs are well-versed with SEBI, ROC, and Income Tax provisions applicable to IPOs. They help avoid legal errors that can delay or derail the issue.
Having a dedicated CA team ensures your finance department can focus on operations while experts handle regulatory filings, audits, and disclosures.
By flagging potential issues during internal reviews, CAs help businesses fix gaps before SEBI or stock exchanges raise red flags.
Accurate, audited, and compliant financials build investor trust—essential for IPO subscription success.
Post-listing, companies must adhere to a different set of compliance and governance norms. CAs help scale compliance systems to meet public company requirements.
The best time to engage a Chartered Accountant firm for IPO compliance is at least 12–18 months before filing the DRHP. Early engagement allows time for:
Cleaning up books of accounts
Implementing internal controls
Restructuring capital or shareholder pattern
Addressing potential legal or tax hurdles
| Challenge | CA's Role |
|---|---|
| Incomplete financial records | Standardize and restate financials |
| Improper tax planning | Structure holding and tax models |
| Inadequate internal audit process | Implement robust internal controls |
| Legal irregularities or ROC discrepancies | Identify and rectify proactively |
| SEBI non-compliance | Ensure end-to-end regulatory compliance |
At TAXAJ, our Chartered Accountants specialize in end-to-end IPO readiness and compliance services. With experience across industries and geographies, we ensure:
Thorough financial and regulatory preparation
Seamless coordination with SEBI, stock exchanges, and legal teams
Long-term support for listed entity compliance
Whether you're a tech startup or an established manufacturer, we tailor our services to ensure your IPO is smooth, timely, and fully compliant.
An IPO is a landmark event—but the success of your listing is as much about compliance and transparency as it is about valuation and demand. Engaging an experienced team of Chartered Accountants can make all the difference between a successful launch and a delayed listing.
Ensure your IPO journey is smooth, stress-free, and fully compliant with TAXAJ’s expert IPO compliance services.