SEBI rolls back merchant banker rule tweak on activities not regulated by it
This story was originally published at 23:14 IST on 18 June 2025
Register to read our real-time news.Informist, Wednesday, Jun. 18, 2025
NEW DELHI – The Securities and Exchange Board of India has decided to roll back a recent tweak in its merchant banker regulations that prohibited merchant bankers from undertaking activities which did not come under the regulatory purview of SEBI. The board Wednesday approved a proposal to permit merchant bankers from undertaking activities which are not in the purview of SEBI or even other financial sector regulators.
In SEBI's board meeting on Dec. 18, 2024, the merchant banker regulations were overhauled and one of the amendments pertained to disallowing activities that did not fall under SEBI's purview. This has now been rolled back. SEBI said in Wednesday's press release this was on account of internal review and feedback from stakeholders such as Association of Investment Bankers of India, US-India Strategic Partnership Forum, and Federation of Indian Chambers of Commerce and Industry.
SEBI wholetime member Kamlesh Chandra Varshney said in a press conference following the board meeting Wednesday that the market regulator will specify more terms and conditions for merchant bankers when it issues a circular. The merchant bankers will have to disclose upfront all unregulated activities, Varshney said.
SEBI chairman Tuhin Kanta Pandey said in the same press conference the merchant banker will have to notify to its clients which of their activities are regulated by SEBI, Reserve Bank of India, and other financial sector regulators, and which activities are not regulated by any financial sector regulator. The merchant bankers will have to make these disclosures clearly and fully "so that everyone is aware", Pandey said. The SEBI chief said no risks will spill over due to its roll back. End
Reported by Rajesh Gajra
Edited by Deepshikha Bhardwaj
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000 /+91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
