Merchant bankers need to furnish financial details for SEBI registration

By PTI
17 July, 2015

Merchant bankers need to furnish details of their financial accounts as well as infrastructure facilities for seeking a registration to operate in the Indian capital markets, regulator Sebi said today.

Apart from disclosing information on the applicant’s ‘Memorandum and Article of Association’, its promoter, director, and their shareholding in other companies, details about key personnel, it also has to provide the Unique Identification Number (UIN) allotted to market participant.

In case, any of the directors, employees, its group firm are members of exchanges then details of the membership like broker registration number, payment of fees to Sebi, whether the member is facing any disciplinary action and a conduct certificate from the stock exchange will have to be furnished to the regulator.

These details need to be provided on an ‘additional information sheet’ along with the application for registration as a merchant banker, Sebi said while issuing a detailed set of FAQs for such entities.

With regard to the financial accounts, Sebi said, “copy of audited annual accounts (including auditor’s report, schedules and break-up of the investments, loans and advances)” would have to be submitted to the regulator and the detail should not be more than six months old at the time of furnishing the information.

Securities and Exchange Board of India (Sebi) said that whether the applicant is registered as non-banking finance company (NBFC) with Reserve Bank, details about any action or adverse comments of the apex bank in the last three financial years would have to be disclosed.

Quantitative details with regard to establishment available for carrying on merchant banking activities should be provided like office space, communication facilities and systems support (both hardware and software).

Under the norms, a merchant banker is required to have a minimum net-worth of at least Rs 5 crore.

A merchant banker seeking registration is required to pay Rs 25 lakh fees at the time of obtaining initial registration, which will be valid for five years.

In case it wishes to continue as merchant banker, the applicant has to apply with Sebi (with a fee of Rs 9 lakh) for permanent registration three months prior to the expiry of the initial approval.

In case of change in control, a merchant banker will have to obtain fresh registration within Six months.


Leave Your Comment
SEBI probing role of Goldman Sachs, Motilal Oswal and CLSA in Yes Bank QIP fiasco

SEBI probing role of Goldman Sachs, Motilal Oswal and CLSA in Yes Bank QIP fiasco

Bruhadeeswaran R 11 months ago
The Securities & Exchange Board of India (SEBI) is probing the role of investment bankers in Yes Bank’s planned qualified institutional placement (QIP) of shares...
Merchant Bankers To Disclose Post-listing Performance Of Companies

Merchant Bankers To Disclose Post-listing Performance Of Companies

TEAM VCC 6 years ago
Market regulator SEBI has mandated all merchant bankers to disclose the performance of the companies (whose public issues they have managed) on various parameters, in...
SEBI cancels Sahara Asset Management's portfolio manager license

SEBI cancels Sahara Asset Management’s portfolio manager license

Bhawna Gupta 2 years ago
Capital markets regulator Securities and Exchange Board of India (SEBI) has refused to renew the fund management license held by Sahara Asset Management Company Pvt...
No Comments

Merchant bankers need to furnish financial details for SEBI registration

Powered by WordPress.com VIP