SEBI Mandates Registration for Bankers to an Issue, Amends SEBI (Bankers to an Issue) Regulations [Read Notification]

The  Securities and Exchange Board of India ( SEBI ) has mandated the registration for the bankers to an issue by amending the SEBI (Bankers to an Issue) Regulations, 1994. The SEBI, vide Notification No. SEBI/LAD-NRO/GN/2024/211, it has been officially conveyed to the public.

These regulations may be called the Securities and Exchange Board of India (Bankers to an Issue) (Amendment) Regulations, 2024.

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Under Regulation 2, new sub-clauses have been added to expand the scope of activities permitted for bankers to an issue. These include providing escrow services for issue management, buybacks, delistings, or open offers as required by SEBI regulations, opening separate bank accounts for IPO/FPO proceeds, and engaging in other activities specified by SEBI.

Additionally, Regulation 3 has been modified to mandate that no person can act as a banker to an issue without obtaining a certificate of registration from SEBI. The sub-regulations under Regulation 3 have been renumbered accordingly to align with the structural changes introduced.

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The notification states as follows:

“In the Securities and Exchange Board of India (Bankers to an Issue) Regulations, 1994, – I. in regulation 2, in clause (aa), after the existing sub-clause (iv), the following new sub-clauses shall be inserted, namely,-

“(v) providing escrow services for the purposes of issue management, buyback, delisting, or open offer, as required under the relevant regulations made by the Board;

(vi) opening of a separate bank account for depositing the proceeds in the initial public offer/ further public offer; and

(vii) such other activities as may be specified by the Board.”

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In regulation 3, -

(i) the following shall be inserted as sub-regulation (1), namely,-

“(1) No person shall act as a banker to an issue, unless a certificate of registration has been obtained from the Board under these regulations.”

(ii) in the existing sub-regulations (1A) and (2), the symbols and numeral “(1)”, wherever it appears, shall be substituted with the symbols and numeral “(2)”;

(iii) thereafter the existing sub-regulations (1), (1A) and (2) shall be renumbered as sub-regulations (2), (3), and (4) respectively.

To Read the full text of the Notification CLICK HERE

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