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    Regulatory Framework of Merchant Banking

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    Kirti Khattar
    This document summarizes the regulatory framework for merchant banking in India. It discusses the roles and responsibilities of bankers to an issue, the registration requirements with SEBI including necessary infrastructure and being a fit and proper person, the code of conduct, inspection by RBI at SEBI's request, and liabilities for non-compliance. It also outlines the roles of portfolio managers, the mandatory registration with SEBI, and matters considered during the registration process such as infrastructure, experience requirements, capital adequacy, and associated companies' registration status.

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    Regulatory Framework of Merchant Banking

    Uploaded by

    Kirti Khattar
    6K views12 pages
    This document summarizes the regulatory framework for merchant banking in India. It discusses the roles and responsibilities of bankers to an issue, the registration requirements with SEBI including necessary infrastructure and being a fit and proper person, the code of conduct, inspection by RBI at SEBI's request, and liabilities for non-compliance. It also outlines the roles of portfolio managers, the mandatory registration with SEBI, and matters considered during the registration process such as infrastructure, experience requirements, capital adequacy, and associated companies' registration status.

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    This document summarizes the regulatory framework for merchant banking in India. It discusses the roles and responsibilities of bankers to an issue, the registration requirements with SEBI including necessary infrastructure and being a fit and proper person, the code of conduct, inspection by RBI at SEBI's request, and liabilities for non-compliance. It also outlines the roles of portfolio managers, the mandatory registration with SEBI, and matters considered during the registration process such as infrastructure, experience requirements, capital adequacy, and associated companies' registration status.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    6K views12 pages

    Regulatory Framework of Merchant Banking

    Uploaded by

    Kirti Khattar
    This document summarizes the regulatory framework for merchant banking in India. It discusses the roles and responsibilities of bankers to an issue, the registration requirements with SEBI including necessary infrastructure and being a fit and proper person, the code of conduct, inspection by RBI at SEBI's request, and liabilities for non-compliance. It also outlines the roles of portfolio managers, the mandatory registration with SEBI, and matters considered during the registration process such as infrastructure, experience requirements, capital adequacy, and associated companies' registration status.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 12
    At a glance
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    The key takeaways are about the regulatory framework for merchant banking and bankers to an issue, their registration requirements with SEBI, code of conduct, inspections, and liabilities for default.

    The applicant must have necessary infrastructure, communication and data processing facilities and manpower, not be involved in any litigation related to securities market, be a scheduled bank, registration must be in interest of investors, and the applicant must be a fit and proper person.

    Inspection is done by RBI upon SEBI's request to ensure books of accounts are maintained properly and to investigate any complaints received from investors against bankers to an issue.

    Regulatory framework of Merchant Banking

    Made By: Charu Dharamwani Kirti Khattar

    Bankers To An Issue
    The bankers to an issue are engaged in activities such as acceptance of application alongwith application money from the investors in respect of issues of capital and refund of application money.

    Registration
    Person must obtain a certificate of registration from the SEBI. SEBI grants registration with reference to the following requirements:
    The applicant has the necessary infrastructure, communication

    and the data processing facilities and manpower; The applicant is not involved in any litigation connected with the securities market; The applicant is a scheduled bank; Grant of a certificate is in the interest of the investors; and The applicant is a fit and proper person.

    He can apply for the renewal of his registration three months before the expiry of the certificate.

    Code of Conduct

    Inspection
    Inspection is done by RBI upon the request of SEBI. Purpose is to ensure that the books of accounts are maintained and to investigate into the complaints received from the investors against the bankers to an issue.

    Liability for Action in Case of Default


    A banker to an issue who controvenes any provision of the SEBI Act/Rules /Regulations would be liable for actions specified therein including the actions under the SEBI Intermediaries Regulation, 2008.

    Portfolio Managers
    Portfolio Managers are persons who advice/direct/undertake, on behalf of the client, whether discretionary portfolio manager or otherwise, the management/administration of portfolio of securities/funds of clients. Portfolio management can be Discretionary Non-discretionary

    In order to act as a portfolio manager, a certificate of registration from the SEBI is mandatory. A certificate /renewal is valid for three years.

    Registration
    While considering the application for registration, the SEBI takes into account matters such as Necessary infrastructure like adequate office staff, equipment and

    manpower; Employment of a minimum of two persons who between them have at least five years experience in related activities in portfolio management/stock broking/investment management; A person directly/indirectly connected with the applicant, that is, associate/subsidiary/inter-connected or group company that has been refused registration; Capital adequacy of not less than a net worth of Rs 2 crore, in terms of capital plus free reserves excluding revaluation reserves minus accumulated losses an deferred expenditure not written off

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