The Securities and Exchange Board of India (SEBI) on January 02, 2026, issued a circular regarding specification of Consequential Compliance Requirements pursuant to the amendment of the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992.
The following has been stated: -
•SEBI has prescribed phased compliance for revised net worth, liquid net worth, underwriting limits, and categorisation of Merchant Bankers under the amended 1992 Regulations.
•New requirements include enhanced capital adequacy, limits on underwriting exposure, minimum revenue thresholds, and stricter disclosure norms, with defined timelines up to January 2028.
•Mandatory certifications (NISM), independent compliance officers, experienced principal officers, and a prohibition on outsourcing core activities have been introduced.
•Merchant Bankers undertaking non-SEBI-regulated activities must segregate operations through separate business units with disclosures, Chinese walls, and board-level oversight.
[Circular No.: HO/49/11/11(106)2025-CFD-RAC-DIL3/I/1796/202]
