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

Specification of the consequential requirements with respect to Amendment of Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992

02-Jan-2026 | HO/49/11/11(106)2025-CFD-RAC-DIL3/I/1796/2026

SEBI has issued a circular specifying the consequential requirements for compliance with the Securities and Exchange Board of India (Merchant Bankers) Amendment Regulations, 1992.

Pursuant to the said circular:

1. The SEBI (Merchant Bankers) Amendment Regulations, 2025 shall come into effect from January 03, 2026.

2. Applications for registration as a merchant banker made on or after January 03, 2026 must comply with the revised net worth requirements prescribed under Regulation 7 (i.e., Rs. 50 crores for Category I and Rs. 10 crores for Category II) and the liquid net worth requirements specified under Regulation 7A (i.e., Rs. 12.5 crores for Category I and Rs. 2.5 crores for Category II) at the time of making the application.

3. Existing merchant bankers are required to comply with the revised net worth and liquid net worth requirements in a phased manner, as specified in Table I of the circular, to ensure smooth adoption of these requirements.

4. For the purposes of Regulation 7A, "liquid net worth" has been defined as net worth deployed in unencumbered liquid assets, subject to applicable haircuts as specified in the table provided under Paragraph 3.1 of the circular.

5. Existing merchant bankers are required to comply, within two years from the effective date (i.e., by January 02, 2028), with the revised underwriting obligations specified under Regulation 22B(2), which shall not exceed 20 times of their liquid net worth.

Kindly refer to the attached document for further details.

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