The Securities and Exchange Board of India (SEBI) on November 29, 2024, issued the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2024 to further amend the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992.
The following amendments have been stated:
• The existing regulation 20 shall be substituted with the following regulation, namely,-
“Responsibility of the lead manager.
20. No lead manager shall agree to manage or be associated with any issue unless its responsibilities relating to the issue particularly, those of disclosures, allotment and refund are clearly defined, allocated and determined and a statement specifying such responsibilities is disclosed in the draft offer document and offer document:
Provided that, where there is more than one lead merchant banker to the issue, the responsibilities of each of the lead merchant banker shall clearly be demarcated and a statement specifying such responsibilities shall be disclosed in the draft offer document and offer document.”
• In regulation 22B, the existing sub-regulation (3) shall be substituted with the following sub-regulation, namely,-
“(3) A merchant banker, if called upon, pursuant to an agreement for underwriting to subscribe to the securities of a body corporate, shall subscribe to the said securities prior to the finalisation of the basis of allotment.”
• The existing regulation 27 shall be substituted with the following regulation, namely, -
“27. A merchant banker shall submit to the Board complete particulars of the transaction for acquisition of securities of a body corporate whose issue is managed by that merchant banker, within fifteen days from the date of entering into such a transaction:
Provided that complete particulars of a transaction for acquisition of securities pursuant to underwriting or market making obligations in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 shall be submitted to the Board on a quarterly basis.”
They shall come into force on November 29, 2024.
[File No. SEBI/LAD-NRO/GN/2024/214]
