**Summary:**
SEBI Circular SEBI/HO/MIRSD/MIRSD\_DOR/PCIR/605, dated August 3, 2021, permits non-scheduled Payments Banks, with prior approval from the Reserve Bank of India (RBI), to register as Bankers to an Issue (BTI) under the SEBI (Bankers to an Issue) Regulations, 1994. This follows a SEBI notification dated July 30, 2021, amending the BTI Regulations to allow banking companies specified by the Board to act as BTIs, in addition to scheduled banks.
Payments Banks registered as BTIs are also permitted to act as Self Certified Syndicate Banks, subject to meeting criteria established by the Board. Fund movements from investor to issuer must occur through the investor's savings account held with the payments bank.
This circular is issued under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect investor interests, promote market development, and regulate the securities market. The circular is available on the SEBI website (www.sebi.gov.in) under Legal Framework Circulars.
For further information, contact Aradhana Verma, Deputy General Manager, Market Intermediaries Regulation and Supervision Department, at Tel. No. 022-2644 9633 or via email at aradhanad@sebi.gov.in.
Key Entities Referenced
Securities and Exchange Board of India: The regulatory body issuing the circular.
SEBI Bankers to an Issue Regulations, 1994: The regulations amended by SEBI notification dated July 30, 2021.
National Payments Corporation of India: Mentioned as one of the entities to whom the circular is addressed.
Reserve Bank of India: The central bank from which nonscheduled Payments Banks require prior approval.
Nonscheduled Payments Banks: Banks permitted to register as Bankers to an Issue, subject to conditions.
Bankers to an Issue: The role nonscheduled Payments Banks are permitted to register as.
Self Certified Syndicate Bank: Payments Banks registered as a BTI shall also be permitted to act as a Self Certified Syndicate Bank subject to the fulfilment of the criteria laid down by the Board
Aradhana Verma: Deputy General Manager, Marker Intermediaries Regulation and Supervision Department at SEBI, who signed the circular.
CIRCULAR
SEBI/HO/MIRSD/MIRSD_DOR/P/CIR/ 605 / 2021 August 3, 2021
To
Recognized Stock Exchanges
Registered Depositories
Registered Stock Brokers
Registered Merchant Bankers
Registered Registrars to an Issue and Share Transfer Agents
Registered Depository Participants
National Payments Corporation of India
Non-scheduled Payments Banks who propose to seek registration as Bankers
to an Issue
Madam / Sir,
Sub: Permitting non-scheduled Payments Banks to register as Bankers to an
Issue
1. SEBI vide notification dated July 30, 2021, amended the SEBI (Bankers to an
Issue) Regulations, 1994 (BTI Regulations) thereby permitting such other banking
company, as may be specified by the Board, from time to time, to carry out the
activities of Bankers to an Issue (BTI), in addition to the scheduled banks.
2. In this regard, non-scheduled Payments Banks, which have prior approval from
Reserve Bank of India, shall be eligible to act as a BTI subject to fulfilment of the
conditions stipulated in the BTI Regulations.
3. Payments Banks registered as a BTI shall also be permitted to act as a Self-
Certified Syndicate Bank subject to the fulfilment of the criteria laid down by the
Board in this regard from time to time. The blocking/movement of funds from the
Page 1 of 2investor to issuer shall only be made through the savings account of the investor
held with the payments bank.
4. This circular is issued in exercise of powers conferred by Section 11(1) of the
Securities and Exchange Board of India Act, 1992 to protect the interests of
investors in securities and to promote the development of, and to regulate the
securities market.
5. A copy of this circular is available on SEBI website at www.sebi.gov.in under the
categories “Legal Framework -> Circulars”.
Yours faithfully,
Aradhana Verma
Deputy General Manager
Marker Intermediaries Regulation and Supervision Department
Tel. No. 022-2644 9633
Email ID: aradhanad@sebi.gov.in
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