Review of SEBI (Merchant Bankers) Regulations, 1992

Yesterday, SEBI released a Consultation Paper seeking public feedback on proposed amendments to the SEBI (Merchant Bankers) Regulations, 1992 (“𝗠𝗕 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗶𝗼𝗻𝘀”). This is a significant review of these regulations since their notification on December 22, 1992. As of July 31, 2024, there are 224 registered Merchant Bankers (221 companies and 3 LLPs).

The Consultation Paper, prepared by SEBI’s Primary Market Advisory Committee (PMAC), outlines proposed changes in the following areas:

1. 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝗶𝗲𝘀 𝗽𝗲𝗿𝗺𝗶𝘁𝘁𝗲𝗱 𝗳𝗼𝗿 𝗠𝗕𝘀
2. 𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝘁𝗵𝗮𝘁 𝗠𝗕𝘀 𝗮𝗿𝗲 𝗻𝗼𝘁 𝗿𝗲𝗾𝘂𝗶𝗿𝗲𝗱 𝘁𝗼 𝗮𝗰𝘁 𝗮𝘀 𝘃𝗮𝗹𝘂𝗮𝘁𝗼𝗿𝘀 𝘂𝗻𝗹𝗲𝘀𝘀 𝗽𝗿𝗲𝘀𝗰𝗿𝗶𝗯𝗲𝗱 𝗯𝘆 𝘁𝗵𝗲 𝗯𝗼𝗮𝗿𝗱
3. 𝗥𝗲𝘃𝗶𝘀𝗶𝗼𝗻 𝗼𝗳 𝗰𝗮𝗽𝗶𝘁𝗮𝗹 𝗮𝗱𝗲𝗾𝘂𝗮𝗰𝘆 𝗿𝗲𝗾𝘂𝗶𝗿𝗲𝗺𝗲𝗻𝘁𝘀 𝗮𝗻𝗱 𝗶𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻 𝗼𝗳 𝗻𝗲𝘄 𝗰𝗮𝘁𝗲𝗴𝗼𝗿𝗶𝗲𝘀
4. 𝗖𝗮𝗻𝗰𝗲𝗹𝗹𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗿𝗲𝗴𝗶𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗠𝗕𝘀 𝗻𝗼𝘁 𝗮𝗰𝘁𝗶𝘃𝗲𝗹𝘆 𝗲𝗻𝗴𝗮𝗴𝗲𝗱 𝗶𝗻 𝗽𝗲𝗿𝗺𝗶𝘁𝘁𝗲𝗱 𝗮𝗰𝘁𝗶𝘃𝗶𝘁𝗶𝗲𝘀
5. 𝗔𝗹𝗶𝗴𝗻𝗺𝗲𝗻𝘁 𝗼𝗳 𝗻𝗲𝘁 𝘄𝗼𝗿𝘁𝗵 𝗱𝗲𝗳𝗶𝗻𝗶𝘁𝗶𝗼𝗻 𝘄𝗶𝘁𝗵 𝗧𝗵𝗲 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗔𝗰𝘁, 𝟮𝟬𝟭𝟯
6. 𝗜𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻 𝗼𝗳 𝗺𝗶𝗻𝗶𝗺𝘂𝗺 𝗹𝗶𝗾𝘂𝗶𝗱 𝗻𝗲𝘁 𝘄𝗼𝗿𝘁𝗵
7. 𝗥𝗲𝘃𝗶𝗲𝘄 𝗼𝗳 𝗹𝗲𝗴𝗮𝗹 𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲𝘀 𝗳𝗼𝗿 𝗿𝗲𝗴𝗶𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻 𝗴𝗿𝗮𝗻𝘁
8. 𝗥𝗲𝘃𝗶𝗲𝘄 𝗼𝗳 𝗺𝘂𝗹𝘁𝗶𝗽𝗹𝗲 𝗺𝗲𝗿𝗰𝗵𝗮𝗻𝘁 𝗯𝗮𝗻𝗸𝗶𝗻𝗴 𝗿𝗲𝗴𝗶𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻𝘀 𝗶𝗻𝘁𝗲𝗿𝗺𝘀 𝗼𝗳 𝘀𝗮𝗺𝗲 𝗴𝗿𝗼𝘂𝗽
9. 𝗥𝗲𝘃𝗶𝗲𝘄 𝗼𝗳 𝘂𝗻𝗱𝗲𝗿𝘄𝗿𝗶𝘁𝗶𝗻𝗴 𝗼𝗯𝗹𝗶𝗴𝗮𝘁𝗶𝗼𝗻𝘀
10. 𝗨𝗽𝗱𝗮𝘁𝗲 𝗼𝗳 𝗿𝗼𝗹𝗲𝘀 𝗮𝘀 𝗮𝘀𝘀𝗼𝗰𝗶𝗮𝘁𝗲𝘀
11. 𝗚𝘂𝗶𝗱𝗲𝗹𝗶𝗻𝗲𝘀 𝗳𝗼𝗿 𝗱𝗶𝗿𝗲𝗰𝘁𝗼𝗿𝘀, 𝗸𝗲𝘆 𝗽𝗲𝗿𝘀𝗼𝗻𝗻𝗲𝗹, 𝗮𝗻𝗱 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗼𝗳𝗳𝗶𝗰𝗲𝗿𝘀 𝗿𝗲𝗹𝗮𝘁𝗶𝘃𝗲𝘀 𝗻𝗼𝘁 𝘁𝗼 𝗵𝗼𝗹𝗱 𝘀𝗲𝗰𝘂𝗿𝗶𝘁𝗶𝗲𝘀 𝗳𝗼𝗿 𝗱𝗲𝘀𝗶𝗴𝗻𝗮𝘁𝗲𝗱 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀
12. 𝗘𝗻𝗵𝗮𝗻𝗰𝗲𝗺𝗲𝗻𝘁 𝗼𝗳 𝗲𝗹𝗶𝗴𝗶𝗯𝗶𝗹𝗶𝘁𝘆 𝗿𝗲𝗾𝘂𝗶𝗿𝗲𝗺𝗲𝗻𝘁𝘀
13. 𝗣𝗲𝗻𝗮𝗹𝘁𝗶𝗲𝘀 𝗳𝗼𝗿 𝗳𝗮𝗶𝗹𝘂𝗿𝗲 𝘁𝗼 𝗽𝗮𝘆 𝗿𝗲𝗻𝗲𝘄𝗮𝗹 𝗳𝗲𝗲𝘀
14. 𝗥𝗲𝘃𝗶𝗲𝘄 𝗼𝗳 𝗮𝗽𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝗰𝗲𝗿𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗲 𝗼𝗳 𝗿𝗲𝗴𝗶𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻
15. 𝗠𝗮𝗶𝗻𝘁𝗲𝗻𝗮𝗻𝗰𝗲 𝗼𝗳 𝗿𝗲𝗰𝗼𝗿𝗱𝘀
16. 𝗣𝗿𝗼𝗵𝗶𝗯𝗶𝘁𝗶𝗼𝗻 𝗼𝗳 𝗮𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻 𝗼𝗳 𝗹𝗶𝗯𝗲𝗿𝘁𝗶𝗲𝘀 𝗯𝘆 𝗱𝗶𝗿𝗲𝗰𝘁𝗼𝗿𝘀, 𝗽𝗮𝗿𝘁𝗻𝗲𝗿𝘀, 𝗮𝗻𝗱 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀

The Consultation Paper is open for feedback until September 18, 2024. Readers are encouraged to provide their comments and suggestions to Regstreet Law Advisors at info@regstreetlaw.com