**Report on the Securities and Exchange Board of India Merchant Bankers Amendment Regulations, 2021**
**1. Executive Summary:**
This report analyzes the Securities and Exchange Board of India (SEBI) Merchant Bankers Amendment Regulations, 2021, as published in the Gazette of India on March 30, 2021. This amendment focuses on regulating merchant bankers acting as underwriters. Key changes include redefining terms related to company definitions, explicitly including clauses for underwriting, specifying record-keeping requirements, modifying references to other SEBI regulations, and outlining responsibilities and agreements for merchant bankers acting as underwriters. The amendment aims to enhance transparency, accountability, and investor protection in underwriting activities conducted by merchant bankers.
**2. Introduction:**
This report aims to provide an informative overview and analysis of the Securities and Exchange Board of India Merchant Bankers Amendment Regulations, 2021, based solely on the official policy text published in the Gazette of India. The report details the key changes introduced by this amendment, its likely rationale, and the potential implications for merchant bankers and the securities market.
**3. Policy Overview:**
* The amendment modifies the Securities and Exchange Board of India Merchant Bankers Regulations, 1992.
* **Core Objective(s):** Based on the provided text, the core objectives appear to be:
* To enhance the regulatory framework governing merchant bankers acting as underwriters.
* To clarify responsibilities and obligations of merchant bankers in underwriting activities.
* To promote fair practices and prevent potential conflicts of interest in underwriting.
* To improve transparency and record-keeping related to underwriting agreements.
**4. Background and Rationale:**
The amendment appears designed to address potential gaps and weaknesses in the existing regulations concerning merchant bankers' underwriting activities. The text suggests a need for more specific rules and obligations to ensure that underwriting is conducted fairly and transparently. By clarifying definitions, mandating agreements, specifying record-keeping, and adding responsibilities, the amendment likely aims to mitigate risks associated with underwriting and safeguard the interests of investors and the integrity of the market. Specifically, regulating the conduct of merchant bankers as underwriters seems to be the main issue.
**5. Key Provisions / Changes:**
The amendment introduces the following key changes to the Securities and Exchange Board of India Merchant Bankers Regulations, 1992:
* **I. Regulation 2 (Definitions):**
* Changes the reference to company definition from "clause 7 of section 2 of the Companies Act, 1956" to "clause 11 of section 2 of the Companies Act, 2013". This updates the reference to the current Companies Act.
* Replaces "regulation 12 of the Securities and Exchange Board of India Substantial Acquisition of Shares and Takeovers Regulations, 1997" with "regulations framed under clause h of subsection 2 of section 11 of the Act." This provides a broader, more up-to-date reference.
* Omits clause f. The contents of clause f are not known from this document.
* Inserts new clauses defining "underwriter" and "underwriting." This clarifies the scope of the regulations.
* **II. Regulation 2 (Renumbering and New Subregulation):**
* Renumbers existing Regulation 2 as subregulation (1).
* Adds a new subregulation (2) stating that undefined terms in these regulations will have the same meaning as defined in the Securities and Exchange Board of India Act, the Securities Contracts Regulation Act, 1956, the Depositories Act, 1996, the Companies Act, 2013 or other relevant rules or regulations. This ensures consistency in interpretation.
* **III. Regulation 9A (Obligations):**
* Adds clause (g) requiring merchant bankers acting as underwriters to enter into a valid agreement with the body corporate and abide by regulations under the Act concerning underwriting activities. This emphasizes the importance of a formal agreement and regulatory compliance.
* **IV. Regulation 14 (Record Keeping):**
* Adds subregulation (4) requiring merchant bankers acting as underwriters to maintain records of agreements with body corporates, total securities subscribed, statement of capital adequacy requirements and any other records specified by the Board. This strengthens record-keeping requirements.
* **V. Regulation 22:**
* Replaces the reference to "Chapter XA of the Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations, 2009" with "Chapter VIII of the Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations, 2018." This updates the reference to the current regulations.
* **VI. After Regulation 22 (New Regulations):**
* Inserts new regulations 22A and 22B.
* **22A (Agreement with Clients):** Requires merchant bankers acting as underwriters to have agreements covering the agreement period, allocation of duties, underwriting obligations, subscription period, commission/brokerage, and arrangements for fulfilling obligations. This mandates specific terms for underwriting agreements.
* **22B (General responsibilities of a merchant banker as an underwriter):**
* Forbids direct or indirect benefits from underwriting other than commission or brokerage.
* Limits total underwriting obligations to twenty times the net worth of the merchant banker.
* Requires subscription to securities within 45 days of intimation from the body corporate.
* **VII. Schedule III (Code of Conduct):**
* Adds clauses 33, 34, and 35.
* **33:** Prohibits insider trading by merchant bankers, their directors, partners, managers, or through associates/family.
* **34:** Prohibits misrepresentation of services or underwriting commitments.
* **35:** Prohibits unfair competition that harms other underwriters.
**6. Target Audience and Stakeholders:**
The primary target audience is merchant bankers registered with SEBI, specifically those involved in underwriting activities. Secondary stakeholders include:
* Body corporates seeking underwriting services.
* Investors in securities underwritten by merchant bankers.
* The Securities and Exchange Board of India (SEBI) as the regulatory body.
* Other entities involved in the securities market.
**7. Implementation Aspects (Inferred):**
* **Responsible agency/bodies:** The Securities and Exchange Board of India (SEBI) is the primary responsible body for implementing and enforcing these regulations.
* **Timelines or procedures:** The regulations come into force on the date of their publication in the Official Gazette (March 30, 2021). Regulation 22B specifies a 45-day timeline for subscribing to securities after receiving intimation from the body corporate.
* Merchant bankers must establish and document procedures to comply with the new record-keeping, agreement and conduct requirements.
**8. Expected Outcomes / Impact of Changes:**
The intended outcomes of these amendments are likely to include:
* Increased transparency and standardization in underwriting agreements.
* Improved risk management by limiting underwriting obligations relative to net worth.
* Enhanced protection against insider trading and misrepresentation.
* Promotion of fair competition among underwriters.
* Overall improved integrity and efficiency of the underwriting process.
**9. Conclusion:**
The Securities and Exchange Board of India Merchant Bankers Amendment Regulations, 2021, represent a significant update to the regulatory framework governing merchant bankers acting as underwriters. By clarifying definitions, mandating agreements, strengthening record-keeping, and establishing clearer responsibilities, the amendment aims to enhance the integrity and efficiency of underwriting activities, ultimately benefiting investors and the securities market as a whole. The specific focus on underwriting is a critical step toward protecting investor interests and establishing a more transparent and accountable framework.
Key Entities Referenced
NEW DELHI: Capital of India; place of publication of the Gazette of India.
SECURITIES AND EXCHANGE BOARD OF INDIA: Regulatory body for securities market in India. The organization issuing the notification.
Securities and Exchange Board of India Act, 1992: The Act under which the Securities and Exchange Board of India is empowered.
Securities and Exchange Board of India Merchant Bankers Regulations, 1992: Regulations that are being amended by this notification.
Securities and Exchange Board of India Merchant Bankers Amendment Regulations, 2021: Title of the current amendment regulations.
Official Gazette: The official publication where the amendment will be published.
Companies Act, 1956: An act related to companies, being replaced by Companies Act, 2013 in the context of this notification.
Companies Act, 2013: An act related to companies.
Securities and Exchange Board of India Substantial Acquisition of Shares and Takeovers Regulations, 1997: Regulations related to substantial acquisition of shares and takeovers.
Securities Contracts Regulation Act, 1956: An act related to securities contracts.
Depositories Act, 1996: An act related to depositories.
Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations, 2009: Regulations related to issue of capital and disclosure requirements, being replaced by the 2018 regulations in the context of this notification.
Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations, 2018: Regulations related to issue of capital and disclosure requirements.
AJAY TYAGI: Chairman of the Securities and Exchange Board of India.
Mumbai: City in Maharashtra, location of Securities and Exchange Board of India where the notification was issued.
Securities and Exchange Board of India Merchant Bankers Amendment Regulations, 1995: Amendment regulations to the Securities and Exchange Board of India Merchant Bankers Regulations, 1992.
Securities and Exchange Board of India Payment of Fees Amendment Regulations, 1995: Amendment regulations related to payment of fees.
Securities and Exchange Board of India Merchant Bankers Amendment Regulations, 1996: Amendment regulations to the Securities and Exchange Board of India Merchant Bankers Regulations, 1992.
Securities and Exchange Board of India Merchant Bankers Amendment Regulations, 1997: Amendment regulations to the Securities and Exchange Board of India Merchant Bankers Regulations, 1992.
Securities and Exchange Board of India Merchant Bankers Amendment Regulations, 1998: Amendment regulations to the Securities and Exchange Board of India Merchant Bankers Regulations, 1992.
Securities and Exchange Board of India Merchant Bankers Amendment Regulations, 1999: Amendment regulations to the Securities and Exchange Board of India Merchant Bankers Regulations, 1992.
Securities and Exchange Board of India Second Amendment Regulations, 1999: Amendment regulations to the Securities and Exchange Board of India Merchant Bankers Regulations, 1992.
Securities and Exchange Board of India Appeal to the Securities Appellate Tribunal Amendment Regulations, 2000: Amendment regulations related to appeal to the Securities Appellate Tribunal.
Securities and Exchange Board of India Investment Advice by Intermediaries Amendment Regulations, 2001: Amendment regulations related to investment advice by intermediaries.
Securities and Exchange Board of India Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty Regulations, 2002: Amendment regulations related to procedure for holding enquiry by enquiry officer and imposing penalty.
Securities and Exchange Board of India Merchant Bankers Amendment Regulations, 2003: Amendment regulations to the Securities and Exchange Board of India Merchant Bankers Regulations, 1992.
Securities and Exchange Board of India Criteria for Fit and Proper Person Regulations, 2004: Amendment regulations related to criteria for fit and proper person.
Securities and Exchange Board of India Merchant Bankers Amendment Regulations, 2006: Amendment regulations to the Securities and Exchange Board of India Merchant Bankers Regulations, 1992.
Securities and Exchange Board of India Merchant Bankers Second Amendment Regulations, 2006: Amendment regulations to the Securities and Exchange Board of India Merchant Bankers Regulations, 1992.
Securities and Exchange Board of India Merchant Bankers Third Amendment Regulations, 2006: Amendment regulations to the Securities and Exchange Board of India Merchant Bankers Regulations, 1992.
Securities and Exchange Board of India Merchant Bankers Amendment Regulations, 2007: Amendment regulations to the Securities and Exchange Board of India Merchant Bankers Regulations, 1992.
Securities and Exchange Board of India Payment of Fees Amendment Regulations, 2008: Amendment regulations related to payment of fees.
Securities and Exchange Board of India Intermediaries Regulations, 2008: Regulations related to intermediaries.
Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations, 2009: Regulations related to issue of capital and disclosure requirements.
Securities and Exchange Board of India Merchant Bankers Amendment Regulations, 2010: Amendment regulations to the Securities and Exchange Board of India Merchant Bankers Regulations, 1992.
Securities and Exchange Board of India Change in Conditions of Registration of Certain Intermediaries Amendment Regulations, 2011: Amendment regulations related to change in conditions of registration of certain intermediaries.
Securities and Exchange Board of India Merchant Bankers Amendment Regulations, 2011: Amendment regulations to the Securities and Exchange Board of India Merchant Bankers Regulations, 1992.
Securities and Exchange Board of India Merchant Bankers Second Amendment Regulations, 2011: Amendment regulations to the Securities and Exchange Board of India Merchant Bankers Regulations, 1992.
Securities and Exchange Board of India Merchant Bankers Amendment Regulations, 2012: Amendment regulations to the Securities and Exchange Board of India Merchant Bankers Regulations, 1992.
Securities and Exchange Board of India Payment of Fees Amendment Regulations, 2014: Amendment regulations related to payment of fees.
Securities and Exchange Board of India Change in Conditions of Registration of Certain Intermediaries Amendment Regulations, 2016: Amendment regulations related to change in conditions of registration of certain intermediaries.
Securities and Exchange Board of India Payment of Fees and Mode of Payment Amendment Regulations, 2017: Amendment regulations related to payment of fees and mode of payment.
Securities and Exchange Board of India Regulatory Sandbox Amendment Regulations, 2020: Amendment regulations related to Regulatory Sandbox.
रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-एम.एच.-अ.-31032021-226277
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 131] नई ददल्ली, मगं लिार, माच ड30, 2021/चत्रै 9, 1943
No. 131] NEW DELHI, TUESDAY, MARCH 30, 2021/CHAITRA 9, 1943
भारतीय प्रजतभजू त और जिजनमय बोडड
अजधसचू ना
मुम्बई, 30 माच,ड 2021
भारतीय प्रजतभजू त और जिजनमय बोडड
(मचटें बैंककार) (सिं ोधन) जिजनयम, 2021
स.ं सेबी/एलएडी-एनआरओ/जीएन/2021/13.—बोडड, भारतीय प्रजतभूजत और जिजनमय बोडड अजधजनयम, 1992
(1992 का 15) की धारा 30 के तहत प्रदत्त िजियों का प्रयोग करते हुए, एतद्द्वारा भारतीय प्रजतभूजत और जिजनमय बोड ड
(मचेंट बैंककार) जिजनयम, 1992 का संिोधन करन े के जलए जनम्नजलजखत जिजनयम बनाता ह,ै अथाडत:्-
1. इन जिजनयमों को भारतीय प्रजतभूजत और जिजनमय बोडड (मचेंट बैंककार) (संिोधन) जिजनयम, 2021 कहा जा
सकेगा ।
2. िे राजपत्र में उनके प्रकािन की तारीख को प्रिृत्त (लाग)ू होंगे ।
3. भारतीय प्रजतभूजत और जिजनमय बोड ड (मचेंट बैंककार) जिजनयम, 1992 म,ें-
I. जिजनयम 2 म,ें
i. खंड (कक) जनम्नजलजखत खंड से प्रजतस्ट्थाजपत हो जाएगा, अथाडत,् -
1934 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
“(कक) “जनगजमत जनकाय” (बॉडी कारपोरेट) का िही अथड होगा, जो कंपनी अजधजनयम, 2013
(2013 का 18) की धारा 2 के खंड (11) में या के तहत उसके जलए जनयत हो;”
ii. खंड (कघ) म,ें उप-खंड (i) म,ें िब्द, जचह्न तथा अंक “भारतीय प्रजतभूजत और जिजनमय बोडड (िेयरों
का पयाडप्त अजडन और अजधग्रहण) जिजनयम, 1997 के जिजनयम 12”, िब्दों, जचह्नों तथा अंकों
“अजधजनयम की धारा 11 की उप-धारा (2) के खंड (ज) के तहत बनाए गए जिजनयमों” से
प्रजतस्ट्थाजपत हो जाएँग;े
iii. खंड (च) का लोप हो जाएगा;
iv. खंड (च) के पश्चात,् जनम्नजलजखत नए खंड अंत:स्ट्थाजपत दकए जाएंगे, अथाडत,् -
“(छ) “हामीदार” (अंडरराइटर) से िह व्यजि अजभप्रेत ह,ै जो जनगजमत जनकाय (बॉडी कारपोरेट) की
प्रजतभूजतयों (जसक्यूररटीज़) के जनगडम (इश्यू) की हामीदारी (अडं रराइटटग) के कारोबार म ेंलगा होता
ह;ै
(ज) “हामीदारी” से ऐसा करार (एग्रीमेंट) अजभप्रेत ह,ै जो उतनी प्रजतभूजतयों [जजनका जनगडम (इश्यू)
या जिक्रय के जलए प्रस्ट्ताि (ऑफर फॉर सले ) लाया गया हो] में पैसा लगान े (म ें अजभदान / को
सब्सक्राइब करने) या में पैसा लगिान े (में अजभदान / को सब्सक्राइब करिाने) के जलए दकया गया
हो, जजतनी प्रजतभूजतयों (जसक्यरू रटीज़) में पैसा न लगा हो ।”
II. जिजनयम 2 उसके उप-जिजनयम (1) के रूप में पुन:संखयांदकत हो जाएगा, और इस प्रकार पुन:सखं यांदकत
दकए गए उप-जिजनयम के पश्चात्, जनम्नजलजखत नया उप-जिजनयम अंत:स्ट्थाजपत दकया जाएगा, अथाडत–्
“(2) इन जिजनयमों म ें उपयोग दकए गए ककत ु अपररभाजित िब्दों और पदों के िही अथ ड होंगे, जो,
यथाजस्ट्थजत, अजधजनयम या प्रजतभूजत संजिदा (जिजनयमन) अजधजनयम, 1956 (1956 का 42)
[जसक्यूररटीज़ कॉण्रैक््स (रेग्यूलेिन) एक्ट, 1956], या जनक्षेपागार अजधजनयम, 1996 (1996 का 22)
[जडपॉजजटरीज़ एक्ट, 1996], या कंपनी अजधजनयम, 2013 (2013 का 18) या उनके तहत बनाए गए
दकन्हीं जनयमों या जिजनयमों (रेग्यलू ेिन्स) अथिा उनके दकसी कानूनी संिोधन या उनकी
पुन:अजधजनयजमजत में उनके जलए जनयत हों ।”
III. जिजनयम 9क म,ें उप-जिजनयम (1) म,ें खंड (च) के पश्चात्, जनम्नजलजखत नया खडं अतं :स्ट्थाजपत दकया
जाएगा, अथाडत ् -
“(छ) जहाँ मचेंट बैंककार हामीदार (अडं रराइटर) के रूप में कायड कर रहा हो, िहाँ िह उस जनगजमत
जनकाय (बॉडी कारपोरेट) के साथ एक मान्य करार (एग्रीमेंट) करेगा जजसकी ओर से िह हामीदार के रूप
में कायड कर रहा हो, और िह हामीदार के रूप में उसके द्वारा दकए जाने िाले कायों आदद के संबंध म ें
अजधजनयम के तहत बनाए गए जिजनयमों (रेग्यूलिे न्स) का पालन करेगा ।”
IV. जिजनयम 14 म,ें उप-जिजनयम (3) के पश्चात,् जनम्नजलजखत नया उप-जिजनयम अंत:स्ट्थाजपत दकया जाएगा,
अथाडत–्
“(4) हामीदार के रूप में काय ड करने िाला प्रत्येक मचेंट बैंककार जनम्नजलजखत ररकॉडड भी रखेगा -
(i) उस जनगजमत जनकाय (बॉडी कारपोरेट) के साथ दकए गए सभी करारों (एग्रीमेंट) के ब्यौरों का,
जजसकी ओर से िह हामीदार के रूप में कायड कर रहा हो;[भाग III—खण् ड 4] भारत का राजपत्र : असाधारण 3
(ii) प्रत्येक जनगजमत जनकाय (बॉडी कारपोरेट) की उन प्रजतभूजतयों (जसक्यूररटीज़) की कुल संखया
का [करार के अनुसार जजनम ेंपैसा लगाया गया (अजभदान / सजब्स्ट्क्रप्िन दकया गया)];
(iii) पूँजी पयाडप्तता (कैजपटल ऐजडक्वेसी) संबंधी अपेक्षाओं के जििरण का;
(iv) ऐसे अन्य ररकॉड,ड जो बोडड समय-समय पर रखने को कह े।”
V. जिजनयम 22 म,ें िब्द, जचह्न तथा अंक “भारतीय प्रजतभूजत और जिजनमय बोड ड (पूँजी का जनगडमन और
प्रकटीकरण अपेक्षाएँ) जिजनयम, 2009 के अध्याय Xक”, िब्दों, जचह्नों और अंकों “भारतीय प्रजतभूजत और
जिजनमय बोडड [पूँजी का जनगमड न (इश्यू) और प्रकटीकरण अपेक्षाएँ] जिजनयम, 2018 के अध्याय-VIII” स े
प्रजतस्ट्थाजपत हो जाएंग े ।
VI. जिजनयम 22 के पश्चात,् जनम्नजलजखत नए जिजनयम अंत:स्ट्थाजपत दकए जाएंगे, अथाडत-्
“ग्राहकों के साथ करार (एग्रीमटें )
22क. हामीदार (अडं रराइटर) के रूप म ें काय ड करन े िाला प्रत्येक मचेंट बैंककार उस प्रत्येक जनगजमत
जनकाय (बॉडी कारपोरेट) के साथ करार (एग्रीमेंट) करेगा, जजसकी ओर से िह हामीदार के रूप में कायड कर
रहा हो, और उस करार म,ें अन्य बातों के साथ-साथ, जनम्नजलजखत का उल्लेख होगा, अथाडत-्
(i) िह अिजध, जब तक करार लाग ूरहगे ा;
(ii) हामीदार और ग्राहक के क्या-क्या कतडव्य होंग ेऔर उनकी क्या-क्या जजम्मेदाररयाँ होंगी;
(iii) दकतनी रकम तक की हामीदारी की जाएगी;
(iv) िह अिजध, जजसके भीतर ऐस े जनगजमत जनकाय (बॉडी कारपोरेट) द्वारा या की ओर स े सजू चत
दकए जाने के बाद हामीदार को जनगडम (इश्यू) म ें पैसा लगाना होगा (में अजभदान / को सब्सक्राइब
करना होगा);
(v) हामीदार को अदा दकए जान े िाले कमीिन या दलाली की रकम;
(vi) हामीदारी संबंधी बाध्यताओं को पूरा करन े के जलए हामीदार द्वारा दकए गए इंतजामों
(अरेंजमें्स), यदद कोई हों, के ब्यौरे ।
हामीदार के तौर पर मचटें बकैं कार की सामान्य जजम्मदे ाररयाँ
22ख. (1) हामीदार के रूप म ें कायड करने िाला मचेंट बैंककार, हामीदारी करने के जलए ग्राहक के साथ
दकए गए करार (एग्रीमेंट) के तहत अदा दकए जाने िाल े कमीिन या दलाली के जसिाय, जनगडम (इश्यू) की
हामीदारी से प्रत्यक्ष रूप स े या अप्रत्यक्ष रूप स ेकोई और फायदा नहीं लेगा ।
(2) दकसी भी समय, सभी करारों के तहत कुल जमलाकर की जान े िाली हामीदारी मचेंट बैंककार की िुद्ध-
माजलयत (नेटिथड) के बीस गुना से अजधक नहीं होगी ।
(3) हामीदार के रूप में कायड करने िाला प्रत्येक मचेंट बैंककार, हामीदारी करने के जलए दकए गए करार
(एग्रीमेंट) के अनुसार जनगजमत जनकाय (बॉडी कारपोरेट) की प्रजतभूजतयों (जसक्यूररटीज़) में पसै ा लगाने (म ें
अजभदान / को सब्सक्राइब करने) की अपक्षे ा दकए जान े पर, ऐसे जनगजमत जनकाय की ओर से ऐसी सूचना
प्राप्त होने की तारीख से 45 ददनों के भीतर ऐसी प्रजतभूजतयों (जसक्यूररटीज़) में पैसा लगाएगा (में अजभदान
/ को सब्सक्राइब करेगा) ।”
VII. अनसु ूची III म,ें खंड 32 के पश्चात्, जनम्नजलजखत नए खंड अतं :स्ट्थाजपत दकए जाएगं ,े अथाडत-्4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
“33. मचेंट बैंककार या उसके जनदेिकों, भागीदारों (पाटडनसड) या प्रबंधक में स े कोई, जजसके हाथों में परू े
कारोबार का या अजधकांि कारोबार का प्रबंधन हो, न तो अपनी ओर से और न ही अपने सहयोजगयों
(सहयुिों / असोजसए्स) या पररिार के सदस्ट्यों, नातेदारों या जमत्रों के माध्यम स े दकसी अंतरंग व्यापार
(इनसाइडर रेडडग) में जलप्त होगा ।
34. हामीदार के रूप म ें कायड करने िाला मचेंट बैंककार, न तो मौजखक रूप म ें और न ही जलजखत रूप में,
ऐसा कोई बयान देगा, जजससे –
(क) उन सेिाओं के बारे में गलत जानकारी जमलती हो, जो हामीदार अपने ग्राहक को देन े में समथड हो,
या जो हामीदार न ेदकसी दसू री जनगडमकता ड(इश्युअर) कंपनी को प्रदान की हो;
(ख) उसकी हामीदारी संबंधी प्रजतबद्धता के बारे में गलत जानकारी जमलती हो ।
35. हामीदार के रूप कायड करने िाला मचेंट बैंककार ऐसी दकसी अनुजचत प्रजतस्ट्पधाड म ें जलप्त नहीं होगा,
जजससे हामीदार के रूप म ें कायड करन े िाली दसू री एंरटरटयों के जहत को नुकसान हो सकता हो, या दफर
कोई कायड आदद अपन े हाथ में लेते समय या कोई कायड आदद करते समय िह ऐसा कुछ नहीं करेगा जो ऐस े
अन्य हामीदारों के जलए अजहतकर हो ।”
अजय त्यागी, अध्यक्ष
[जिज्ञापन –III/4/असा./567/2020-21]
पाद रटप्पण :
1. भारतीय प्रजतभूजत और जिजनमय बोडड (मचेंट बैंककार) जिजनयम, 1992, सं. एलई/11112/92 द्वारा,
22 ददसम्बर, 1992 को भारत के राजपत्र म ेंप्रकाजित हुए थ े।
2. भारतीय प्रजतभूजत और जिजनमय बोड ड (मचेंट बैंककार) जिजनयम, 1992 तत्पश्चात ् –
i. 7 जसतम्बर, 1995 को भारतीय प्रजतभूजत और जिजनमय बोडड (मचेंट बैंककार) (संिोधन) जिजनयम,
1995, सं. भाप्रजिबो/एलई/1/9/95, द्वारा
ii. 28 निम्बर, 1995 को भारतीय प्रजतभूजत और जिजनमय बोडड (फीस का संदाय) (संिोधन) जिजनयम,
1995, सं. का.आ. 939(अ), द्वारा
iii. 6 जून, 1996 को भारतीय प्रजतभूजत और जिजनमय बोडड (मचेंट बैंककार) (संिोधन) जिजनयम, 1996,
सं. भाप्रजिबो/एलई/III/5/96, द्वारा
iv. 9 ददसम्बर, 1997 को भारतीय प्रजतभूजत और जिजनमय बोडड (मचेंट बैंककार) (संिोधन) जिजनयम,
1997, सं. का.आ. 837 (अ), द्वारा
v. 15 ददसम्बर, 1997 को भारतीय प्रजतभूजत और जिजनमय बोडड (मचेंट बैंककार) (संिोधन) जिजनयम,
1997, सं. का.आ. 869 (अ), द्वारा[भाग III—खण् ड 4] भारत का राजपत्र : असाधारण 5
vi. 21 जनिरी, 1998 को भारतीय प्रजतभूजत और जिजनमय बोड ड (मचेंट बैंककार) (संिोधन) जिजनयम,
1998, सं. का.आ. 74 (अ), द्वारा
vii. 30 जसतम्बर, 1999 को भारतीय प्रजतभूजत और जिजनमय बोडड (मचेंट बैंककार) (संिोधन) जिजनयम,
1999, सं. का.आ. 799 (अ), द्वारा
viii. 17 निम्बर, 1999 को भारतीय प्रजतभूजत और जिजनमय बोडड (मचटें बैंककार) (दसू रा संिोधन)
जिजनयम, 1999, सं. का.आ. 1119 (अ), द्वारा
ix. 28 माच,ड 2000 को भारतीय प्रजतभूजत और जिजनमय बोडड (प्रजतभूजत अपीलीय न्यायाजधकरण को
अपील) (संिोधन) जिजनयम, 2000, सं. का.आ. 278 (अ), द्वारा
x. 29 मई, 2001 को भारतीय प्रजतभूजत और जिजनमय बोडड (मध्यिर्ततयों द्वारा जिजनधान सलाह)
(संिोधन) जिजनयम, 2001, सं. का.आ. 476(अ), द्वारा
xi. 27 जसतम्बर, 2002 को भारतीय प्रजतभूजत और जिजनमय बोड ड (जांच अजधकारी द्वारा जांच करने और
िाजस्ट्त अजधरोजपत करन े के जलए प्रदक्रया) जिजनयम, 2002, सं. का.आ. 1045(अ), द्वारा
xii. 1 अिूबर, 2003 को भारतीय प्रजतभूजत और जिजनमय बोडड (मचेंट बैंककार) (संिोधन) जिजनयम,
2003, सं. का.आ. 1154(अ), द्वारा
xiii. 10 माच,ड 2004 को भारतीय प्रजतभूजत और जिजनमय बोडड (उपयुि तथा उजचत व्यजि के जलए मानदडं )
जिजनयम, 2004, का.आ. स.ं 398(अ), द्वारा
xiv. 18 अप्रैल, 2006 को भारतीय प्रजतभूजत और जिजनमय बोड ड (मचेंट बैंककार) (संिोधन) जिजनयम,
2006, सं. का.आ. 560(अ), द्वारा
xv. 3 मई, 2006 को भारतीय प्रजतभूजत और जिजनमय बोडड (मचेंट बैंककार) (दसू रा सिं ोधन) जिजनयम,
2006, सं. का.आ. 640(अ), द्वारा
xvi. 7 जसतम्बर, 2006 को भारतीय प्रजतभूजत और जिजनमय बोडड (मचेंट बैंककार) (तीसरा संिोधन)
जिजनयम, 2006, सं. का.आ. 1448(अ), द्वारा
xvii. 28 मई, 2007 को भारतीय प्रजतभूजत और जिजनमय बोडड (मचेंट बैंककार) (संिोधन) जिजनयम, 2007,
अजधसूचना सं. 11/एलसी/जीएन/2007/2517, द्वारा
xviii. 31 माचड, 2008 को भारतीय प्रजतभूजत और जिजनमय बोडड (फीस का संदाय) (संिोधन) जिजनयम,
2008, फा.सं. 11/एलसी/जीएन/2008/21669, द्वारा
xix. 26 मई, 2008 को भारतीय प्रजतभूजत और जिजनमय बोड ड (मध्यिती) जिजनयम, 2008, अजधसूचना सं.
एलएडी-एनआरओ/जीएन/2008/11/126538, द्वारा
xx. 26 अगस्ट्त, 2009 को भारतीय प्रजतभूजत और जिजनमय बोडड (पूँजी का जनगडमन और प्रकटीकरण
अपेक्षाएँ) जिजनयम, 2009, अजधसूचना सं. एलएडी/एनआरओ/जीएन/2009-10/15/174471, द्वारा
xxi. 13 अप्रैल, 2010 को भारतीय प्रजतभूजत और जिजनमय बोड ड (मचेंट बैंककार) (संिोधन) जिजनयम,
2010, अजधसूचना सं. एलएडी-एनआरओ/जीएन/2010-11/04/1109, द्वारा6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
xxii. 19 अप्रैल, 2011 को भारतीय प्रजतभूजत और जिजनमय बोडड (कुछ मध्यिर्ततयों [इंटरमीजडयरीज़] के
रजजस्ट्रीकरण की ितों में पररितडन) (संिोधन) जिजनयम, 2011, अजधसूचना सं.
एलएडी/एनआरओ/जीएन/2011-12/03/12650, द्वारा
xxiii. 5 जुलाई, 2011 को भारतीय प्रजतभूजत और जिजनमय बोडड (मचेंट बैंककार) (संिोधन) जिजनयम, 2011,
अजधसूचना सं. एलएडी-एनआरओ/जीएन/2011-12/09/21233, द्वारा
xxiv. 16 अगस्ट्त, 2011 को भारतीय प्रजतभूजत और जिजनमय बोडड (मचेंट बैंककार) (दसू रा संिोधन) जिजनयम,
2011, अजधसूचना सं. एल.ए.डी.एन.आर.ओ./जी.एन./2011-12/17/26149, द्वारा
xxv. 29 माच,ड 2012 को भारतीय प्रजतभूजत और जिजनमय बोडड (मचेंट बैंककार) (संिोधन) जिजनयम, 2012,
अजधसूचना सं. एलएडी-एनआरओ/जीएन/2011-12/40/7335, द्वारा
xxvi. 23 मई, 2014 को भारतीय प्रजतभूजत और जिजनमय बोड ड (फीस का संदाय) (संिोधन) जिजनयम, 2014,
सं. एल.ए.डी.-एन.आर.ओ./जी.एन./2014-15/03/1089, द्वारा
xxvii. 8 ददसम्बर, 2016 को भारतीय प्रजतभूजत और जिजनमय बोडड [कुछ मध्यिर्ततयों (इंटरमीजडयरीज़) के
रजजस्ट्रीकरण की ितों म ें पररितडन] (संिोधन) जिजनयम 2016, सं. सेबी/एल.ए.डी.-
एन.आर.ओ./जी.एन./2016-17/023, द्वारा
xxviii. 29 माच,ड 2017 को भारतीय प्रजतभूजत और जिजनमय बोडड (फीस का भुगतान और भगु तान का माध्यम)
(संिोधन) जिजनयम, 2017, सं. सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2016-17/038, द्वारा
xxix. 17 अप्रलै , 2020 को भारतीय प्रजतभूजत और जिजनमय बोडड (रेग्यूलेटरी सैंडबॉक्स) (संिोधन) जिजनयम
2020, सं. सेबी/एल.ए.डी.-एनआरओ/जीएन/2020/10, द्वारा
संिोजधत हुए थे ।
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 30th March, 2021
SECURITIES AND EXCHANGE BOARD OF INDIA
(MERCHANT BANKERS) (AMENDMENT) REGULATIONS, 2021
No. SEBI/LAD-NRO/GN/2021/13.—In exercise of the powers conferred under Section 30 of the Securities
and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to amend the
Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, namely: –
1. These regulations may be called the Securities and Exchange Board of India (Merchant Bankers) (Amendment)
Regulations, 2021.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, –
I. In regulation 2,
i. in clause (aa), the words and symbols ―clause (7) of section 2 of the Companies Act, 1956 (1 of
1956)‖ shall be replaced with the words and symbols ―clause (11) of section 2 of the Companies
Act, 2013 (18 of 2013)‖.
ii. in clause (ad), in sub-clause (i), the words and symbols ―regulation 12 of the Securities and
Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997‖[भाग III—खण् ड 4] भारत का राजपत्र : असाधारण 7
shall be replaced with the words and symbols ―regulations framed under clause (h) of sub-section
(2) of section 11 of the Act‖;
iii. clause (f) shall be omitted;
iv. after clause (f), the following new clauses shall be inserted, namely–
―(g) ―underwriter‖ means a person who engages in the business of underwriting of an issue of
securities of a body corporate;
(h) ―underwriting‖ means an agreement to subscribe to or procure subscription for securities, issued
or offered for sale, remaining unsubscribed.‖
II. The regulation 2 shall be re-numbered as sub-regulation (1) thereof, and after the sub-regulation so
re-numbered the following new sub-regulation shall be inserted, namely–
―(2) Words and expressions used but not defined in these regulations shall have the same meaning
as have been assigned to them under the Act or the Securities Contracts (Regulation) Act, 1956 (42
of 1956), or the Depositories Act, 1996 (22 of 1996), or the Companies Act, 2013 (18 of 2013) or
any rules or regulations made thereunder or any statutory modification or re-enactment thereto, as
the case may be.‖
III. In regulation 9A, in sub-regulation 1, after clause (f), the following new clause shall be inserted,
namely ─
―(g) where the merchant banker is acting as an underwriter, it shall enter into a valid agreement with
the body corporate on whose behalf it is acting as an underwriter and shall abide by the regulations
made under the Act in respect of the activities carried on by it as underwriter.‖
IV. In regulation 14, after sub-regulation 3, the following new sub-regulation shall be inserted, namely─
―(4) Every merchant banker acting as an underwriter shall also maintain the following records with
respect to—
(i) details of all agreements entered with a body corporate on whose behalf it is acting as an
underwriter;
(ii) total amount of securities of each body corporate subscribed to in pursuance of an agreement;
(iii) statement of capital adequacy requirements;
(iv) such other records as may be specified by the Board from time to time.‖
V. In regulation 22, the words and symbols ―Chapter XA of the Securities and Exchange Board of
India (Issue of Capital and Disclosure Requirements) Regulations, 2009‖ shall be replaced with the
words and symbols ―Chapter VIII of the Securities and Exchange Board of India (Issue of Capital
and Disclosure Requirements) Regulations, 2018‖.
VI. After regulation 22, the following new regulations shall be inserted, namely–
―Agreement with clients.
22A. Every merchant banker acting as an underwriter shall enter into an agreement with each body
corporate on whose behalf it is acting as an underwriter and the said agreement shall, amongst other
things, provide for the following, namely—
(i) the period for which the agreement shall be in force;
(ii) the allocation of duties and responsibilities between the underwriter and the client
(iii) the amount of underwriting obligations;
(iv) the period, within which the underwriter has to subscribe to the issue after being intimated
by or on behalf of such body corporate;
(v) the amount of commission or brokerage payable to the underwriter;
(vi) details of arrangements, if any, made by the underwriter for fulfilling the underwriting
obligations.8 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
General responsibilities of a merchant banker as an underwriter.
22B. (1) A merchant banker acting as an underwriter shall not derive any direct or indirect benefit
from underwriting the issue other than the commission or brokerage payable under the agreement
for underwriting entered with client.
(2) At any point of time, the total underwriting obligations under all the agreements shall not exceed
twenty times of the net worth of the merchant banker.
(3) Every merchant banker acting as an underwriter, in the event of being called upon to subscribe
for securities of a body corporate pursuant to an agreement for underwriting, shall subscribe to such
securities within 45 days of the receipt of such intimation from such body corporate.‖
VII. In schedule III, after clause 32, the following new clauses shall be inserted, namely–
―33. A merchant banker or any of its directors, partners or manager having the management of the
whole or substantially the whole of affairs of the business, shall not either through its account or
their respective accounts or through their associates or family members, relatives or friends indulge
in any insider trading.
34. A merchant banker acting as an underwriter shall not make any statement, either oral or written,
which would misrepresent—
(a) the services that the underwriter is capable of performing for its client, or has rendered to any
other issuer company;
(b) his underwriting commitment.
35. A merchant banker acting as an underwriter shall not indulge in any unfair competition, which is
likely to be harmful to the interest of other entities acting as underwriters carrying on the business of
underwriting or likely to place such other underwriters in a dis-advantageous position in relation to
the underwriter while competing for, or carrying out any assignment.‖
AJAY TYAGI, Chairman
[ADVT.-III/4/Exty./567/2020-21]
Footnotes:
1. The Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992 was published in the
Gazette of India on December 22, 1992 vide No. LE/11112/92.
2. The Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992 was amended -
i. on September 7, 1995 by the Securities and Exchange Board of India (Merchant Bankers)
Amendment Regulations, 1995 vide No. SEBI/LE/1/9/95;
ii. on November 28, 1995 by the Securities and Exchange Board of India (Payment of Fees) Amendment
Regulations, 1995 vide No. S.O. 939 (E);
iii. on June 6, 1996 by the Securities and Exchange Board of India (Merchant Bankers) Amendment
Regulations, 1996 vide SEBI/LE/III/5/96;
iv. on December 9, 1997 by the Securities and Exchange Board of India (Merchant Bankers)
Amendment Regulations, 1997 vide No. S.O. 837 (E);
v. on December 15, 1997 by the Securities and Exchange Board of India (Merchant Bankers)
Amendment Regulations, 1997 vide No. S. O. 869(E);
vi. on January 21, 1998 by the Securities and Exchange Board of India (Merchant Bankers)
Amendment Regulations, 1998 vide No. S.O. 74 (E);
vii. on September 30, 1999 by the Securities and Exchange Board of India (Merchant Bankers)
(Amendment) Regulations, 1999 vide No. S.O. 799 (E);
viii. on November 17, 1999 by the Securities and Exchange Board of India (Merchant Bankers) (Second
Amendment) Regulations, 1999 vide No. S.O. 1119 (E);
ix. on March 28, 2000 by the Securities and Exchange Board of India (Appeal to the Securities
Appellate Tribunal) (Amendment) Regulations, 2000 vide No. S.O. 278 (E);[भाग III—खण् ड 4] भारत का राजपत्र : असाधारण 9
x. on May 29, 2001 by the Securities and Exchange Board of India (Investment Advice by
Intermediaries) (Amendment) Regulations, 2001 vide No. S.O. 476 (E);
xi. on September 27, 2002 by the Securities and Exchange Board of India (Procedure for Holding
Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 vide No. S.O. 1045 (E);
xii. on October 1, 2003 by the Securities and Exchange Board of India (Merchant Bankers)
(Amendment) Regulations, 2003 vide No. S.O. 1154 (E);
xiii. on March 10, 2004 by the Securities and Exchange Board of India (Criteria for Fit and Proper
Person) Regulations, 2004 vide S.O. No. 398(E);
xiv. on April 18, 2006 by the Securities and Exchange Board of India (Merchant Bankers)
(Amendment) Regulations, 2006 vide No. S.O. 560 (E);
xv. on May 3, 2006 by the Securities and Exchange Board of India (Merchant Bankers) (Second
Amendment) Regulations, 2006 vide No. S.O. 640 (E);
xvi. on September 7, 2006 by the Securities and Exchange Board of India (Merchant Bankers) (Third
Amendment) Regulations, 2006 vide No. S.O. 1448 (E);
xvii. on May 28, 2007 by the Securities and Exchange Board of India (Merchant Bankers) (Amendment)
Regulations, 2007 vide Notification No.11/LC/GN/2007/2517;
xviii. on March 31, 2008 by the Securities and Exchange Board of India (Payment of Fees) (Amendment)
Regulations, 2008 vide F. No. 11/LC/GN/2008/21669;
xix. on May 26, 2008 by the Securities and Exchange Board of India (Intermediaries) Regulations,
2008 vide Notification No. LAD-NRO/GN/2008/11/126538;
xx. on August 26, 2009 by the Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2009 vide Notification No. LAD/ NRO/GN/2009-10/15/174471;
xxi. on April 13, 2010 by the Securities and Exchange Board of India (Merchant Bankers) (Amendment)
Regulations, 2010 vide Notification No. LAD-NRO/GN/2010-11/04/1109;
xxii. on April 19, 2011 by the Securities and Exchange Board of India (Change in Conditions of
Registration of Certain Intermediaries) (Amendment) Regulations, 2011 vide Notification No.
LAD/ NRO/GN/ 2011-12/03/12650;
xxiii. on July 5, 2011 by the Securities and Exchange Board of India (Merchant Bankers) (Amendment)
Regulations, 2011 vide Notification No. LAD-NRO/GN/2011-12/09/21233;
xxiv. on August 16, 2011 by the Securities and Exchange Board of India (Merchant Bankers) (Second
Amendment) Regulations, 2011 vide Notification No. LAD-NRO/GN/2011-12/17/26149;
xxv. on March 29, 2012 by the Securities and Exchange Board of India (Merchant Bankers)
(Amendment) Regulations, 2012 vide Notification No. LAD-NRO/GN/2011-12/40/7335;
xxvi. on May 23, 2014 by the Securities and Exchange Board of India (Payment of Fees) (Amendment)
Regulations, 2014 vide Notification No. LAD-NRO/GN/2014-15/03/1089;
xxvii. on December 8, 2016 by the Securities and Exchange Board of India (Change in Conditions of
Registration of Certain Intermediaries) (Amendment) Regulations, 2016 vide Notification No.
SEBI/LAD/NRO/GN/ 2016-17/023;
xxviii. on March 29, 2017 by the Securities and Exchange Board of India (Payment of Fees and Mode of
Payment) (Amendment) Regulations, 2017 vide Notification No. SEBI/LAD-NRO/GN/2016-17/38;
xxix. on April 17, 2020 by the Securities and Exchange Board of India (Regulatory Sandbox)
(Amendment) Regulations, 2020 vide Notification No. SEBI/LAD-NRO/GN/2020/10.
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