Regstreet Law Advisors
SEBI has issued a circular dated January 02, 2026 pursuant to the SEBI (Merchant Bankers) (Amendment) Regulations, 2025, effective January 03, 2026, specifying the consequential requirements with respect to the amendment.
๐๐๐ฒ ๐ก๐ข๐ ๐ก๐ฅ๐ข๐ ๐ก๐ญ๐ฌ ๐ข๐ง๐๐ฅ๐ฎ๐๐:
๐. ๐๐ก๐๐ฌ๐๐ ๐ข๐ฆ๐ฉ๐ฅ๐๐ฆ๐๐ง๐ญ๐๐ญ๐ข๐จ๐ง ๐จ๐ ๐๐๐ฉ๐ข๐ญ๐๐ฅ ๐๐๐๐ช๐ฎ๐๐๐ฒ ๐๐ง๐ ๐ฅ๐ข๐ช๐ฎ๐ข๐ ๐ง๐๐ญ ๐ฐ๐จ๐ซ๐ญ๐ก ๐ง๐จ๐ซ๐ฆ๐ฌ: Revised requirements apply to new applicants from January 03, 2026. Existing merchant bankers must comply in phases:
– ๐๐ก๐๐ฌ๐ ๐ (02 January 2027): Net worth โน25 cr & liquid net worth โน6.25 cr (Category I); net worth โน7.5 cr & liquid net worth โน1.875 cr (Category II).
– ๐๐ก๐๐ฌ๐ ๐๐ ( 02 January 2028) : Net worth โน50 cr & liquid net worth โน12.5 cr (Category I); net worth โน10 cr & liquid net worth โน2.5 cr (Category II).
Existing MBs must intimate their intended category by 02 January 2027 with CA certificates. Failure to meet Category I norms leads to reclassification as Category II; failure to meet Category II norms restricts fresh permitted activities.
๐. ๐๐ข๐ช๐ฎ๐ข๐ ๐ง๐๐ญ ๐ฐ๐จ๐ซ๐ญ๐ก: To comprise only unencumbered liquid assets with prescribed haircuts for cash, bank deposits, government securities, specified mutual fund units and listed Nifty 500 securities.
๐. ๐๐ง๐๐๐ซ๐ฐ๐ซ๐ข๐ญ๐ข๐ง๐ ๐จ๐๐ฅ๐ข๐ ๐๐ญ๐ข๐จ๐ง๐ฌ: Shall not exceed 20 times liquid net worth. Existing MBs must comply by January 02, 2028, with mandatory CA certification in half-yearly reporting.
๐. ๐๐ข๐ง๐ข๐ฆ๐ฎ๐ฆ ๐ซ๐๐ฏ๐๐ง๐ฎ๐ ๐๐ซ๐จ๐ฆ ๐ฉ๐๐ซ๐ฆ๐ข๐ญ๐ญ๐๐ ๐๐๐ญ๐ข๐ฏ๐ข๐ญ๐ข๐๐ฌ: Minimum cumulative revenue over preceding three financial years: โน25 crore (Category I) and โน5 crore (Category II). First assessment from April 01, 2029. Annual revenue reporting starts FY 2026-27.
๐. ๐๐ญ๐ก๐๐ซ ๐ฉ๐ก๐๐ฌ๐๐ ๐ญ๐ซ๐๐ง๐ฌ๐ข๐ญ๐ข๐จ๐ง ๐ญ๐ข๐ฆ๐๐ฅ๐ข๐ง๐๐ฌ:
i. Independent compliance officer – April 03, 2026
ii. Principal officer must have min five yearsโ experience in financial markets – January 02, 2027
iii. Marketing-only disclosures – public issues filed on or after 03 January 2026
iv. Closure of outsourcing of core activities – April 03, 2026
v. Segregation of non-SEBI regulated activities into SBUs – July 03, 2026
vi. Website disclosures on non-SEBI regulated activities – February 02, 2026
vii.ย Compliance report for existing non-SEBI mandates – July 03, 2026
Copy of the circular is enclosed.
Readers are welcome to share their views with Regstreet Law Advisors on info@regstreetlaw.com
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SEBI issues circular specifying consequential compliance requirements under amended Merchant Bankers Regulations
- / January 5, 2026
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