IPO-Ready? Why Exchanges Care Deeply About Your 'Chain Of Agreements'

Have you been or heard from an IPO aspirant encountering unexpected delays or rejections during SEBI scrutiny on their path to listing? Despite planning initial public offerings having collected three years of audited financials, compliance certifications, board restructuring, and the draft red herring prospectus? The delays are not because their financials are weak, but because they cannot adequately demonstrate how their revenue is actually generated. The culprit? A missing or inadequate "chain of agreements" that documents the complete business transaction flow.

They hire investment bankers, appoint merchant bankers, and prepare detailed disclosures about their business model and risk factors.Yet, stock exchanges no longer focus exclusively on how much revenue a company reports. They now scrutinize how that revenue is generated, verified, and substantiated through formal documentation. A company with strong growth metrics but informal documentation practices may