Regulation 20 - Obligations of the Merchant Banker - Securities and Exchange Board of India (Buy Back Of Securities) Regulations, 1998

Obligations of the Merchant Banker 20. The merchant banker shall ensure that- (a) the company is able to implement the offer; (b) the provision relating to escrow account as referred to in regulation 10 has been made; (c) firm arrangements for monies for payment to fulfil the obligations under the offer are in place; (d) the public announcement of buy-back is made in terms of the regulations; (e) the letter of offer has been filed in terms of the regulations; (f) the merchant banker shall furnish to the Board a due diligence certificate which shall accompany the draft letter of offer; (g) the merchant banker shall ensure that the contents of the public announcement of offer as well as the letter of offer are true, fair and adequate and quoting the source wherever necessary; (h) the merchant banker shall ensure compliance of section 77A and section 77B of the Companies Act, and any other laws or rules as may be applicable in this regard; (i) upon fulfilment of all obligations by the company under the regulations, the merchant banker shall inform the bank with whom the escrow or special amount has been deposited to release the balance amount to the company; (j) the merchant banker shall send a final report to the Board in the form specified within 15 days from the date of closure of the buy-back offer.