SEBI Regulations for Merchant Bankers

Merchant Bankers have been barred from undertaking activities other than related to the securities market. The SEBI (Merchant Bankers) Regulations, 1992 have been amended on December 19, 1997 to provide that:

a. The applicant should be a fit and proper person;

b. A merchant banker has to seek separate registration for its underwriting or portfolio management activities;

c. The categorization of merchant bankers I, II, III and IV has been dispensed with;

d. A merchant banker, other than a bank or a public financial institution, has been prohibited from carrying any activities not pertaining to the securities market; and Read more…