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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2024

29-Nov-2024 | F. No. SEBI/LAD-NRO/GN/2024/214

SEBI has issued Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2024, effective from 29th November 2024,

Key highlights-
1. In Regulation 6-
a. In sub-regulation (b) the requirement of having a minimum of 2 persons in applicant's employment having experience to conduct a business of merchant banker has been substituted. According to the new requirement, the applicant is required to have in his employment, minimum 2 persons who are professionally qualified in finance, or law or accountancy or business management from a Government recognised university or institution or who have a recognised degree in finance or law or accountancy or business management from a foreign university or institution.
b. The requirement of the applicant having professional qualification from an institution recognized by the Government in finance, law or business management has been removed.

2. The timeline for reporting to the Board about the details of any change in information submitted while seeking registration has been changed from "immediately" to "within seven working days of such change"

3. Regulation 20 regarding Responsibility of the Lead Manager is substituted, the substitued Regulation reads as under-

No lead manager shall agree to manage or be associated with any issue unless its responsibilities relating to the issue particularly, those of disclosures, allotment and refund are clearly defined, allocated and determined and a statement specifying such responsibilities is disclosed in the draft offer document and offer document:

Provided that, where there is more than one lead merchant banker to the issue, the responsibilities of each of the lead merchant banker shall clearly be demarcated and a statement specifying such responsibilities shall be disclosed in the draft offer document and offer document.

Kindly refer to the attached circular for more information.

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