The Securities and Exchange Board of India (Merchant Bankers) (Second Amendment) Regulations, 2006 - S.O. No.640(E) - SEBI/LAD/DOP/26296/2006 - SEBI

SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION Mumbai, the 03 rd May, 2006 S.O. No.640(E).-- In exercise of the powers conferred by Section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, namely :-- 1. These regulations may be called the Securities and Exchange Board of India (Merchant Bankers) (Second Amendment) Regulations, 2006. 2. They shall come into force on the date of their publication in the Official Gazette. 3. In the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, Schedule IV shall be substituted with the following, namely:-- SCHEDULE IV Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992 [Regulation 24A] 1. There shall be charged on every draft offer document submitted by a merchant banker to the Board, a fee at the following rates: I. For a period of one year from the commencement of the Securities and Exchange Board of India (Merchant Bankers) (Second Amendment) Regulations, 2006 A. Public Issues Size of the issue, including intended retention of over subscription Amount/Rate of fees Less than or equal to two crores rupees A flat charge of ten thousand rupees (Rs. 10,000) More than two crores rupees 0.05 per cent of the issue size B. Rights Issues Size of the issue, including intended retention of over subscription Amount/Rate of fees Less than or equal to four crores rupees A flat charge of ten thousand rupees (Rs. 10,000) More than four crores rupees and less than or equal to one thousand crores rupees 0.025 per cent of the issue size More than one thousand crores rupees A flat charge of twenty five lakhs rupees (Rs. 25,00,000) II. After the expiry of one year from the commencement of the Securities and Exchange Board of India (Merchant Bankers) (Second Amendment) Regulations, 2006 A. Public Issues Size of the issue, including intended retention of over subscription Amount/Rate of fees Less than or equal to one crore rupees A flat charge of ten thousand rupees (Rs. 10,000) More than one crore rupees 0.1 per cent of the issue size B. Rights Issues Size of the issue, including intended retention of over subscription Amount/Rate of fees Less than or equal to two crores rupees A flat charge of ten thousand rupees (Rs. 10,000) More than two crores rupees and less than or equal to five hundreds crores rupees 0.05 per cent of the issue size More than five hundreds crores rupees A flat charge of twenty five lakhs rupees (Rs. 25,00,000) 2. The fees under clause 1 shall be paid by the merchant banker to the Board while submitting the draft offer document under regulation 24. 3. In a case where the issue size is not determined at the time of submission of the draft offer document, the merchant banker may pay fees under clause 1 based on the estimated issue size. 4. If the issue size estimated by the merchant banker differs from eventual issue size and thereby-- (a) the fees paid by the merchant banker is found to be deficient, the balance fee shall be paid by the merchant banker within seven days of filing the final prospectus with the Registrar of Companies under Section 60 of the Companies Act, 1956; or (b) any excess fee is found to have been paid, it shall be refunded by the Board to the merchant banker, suo motu or an application made by the merchant banker in this behalf. 5. The fees shall be paid by means of a demand draft drawn in favour of 'Securities and Exchange Board of India' payable at Mumbai, or in a case where the draft offer document is submitted to a Regional Office of the Board, payable at the city where such Regional Office is located. [F. No. SEBI/LAD/DOP/26296/2006] M. DAMODARAN, Chairman Footnotes : 1. The principal regulations Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992 were published in the Gazette of India dated 22nd December, 1992 vide F. No. 20/15/SE/92. 2. The Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992 was subsequently amended : (a) on 7th September, 1995 by Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 1995 vide No. S.O. 396 (E); (b) on November 28, 1995 by Securities and Exchange Board of India (Payment of Fees) (Amendment) Regulations, 1995 vide No. S.O. 939 (E); (c) on June 6, 1996 by Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 1996 vide F. No. SEBI/LE-I/9/95; (d) on December 9, 1997 by Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 1997 vide No. S.O. 837 (E); (e) on January 21, 1999 by Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 1999 vide No. S.O. 74 (E); (f) on September 30, 1999 by Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 1999 vide No. S.O. 799 (E); (g) on November 17, 1999 by Securities and Exchange Board of India (Merchant Bankers) (Second Amendment) Regulations, 1999 vide No. S.O. 1119 (E); (h) on March 28, 2000 by Securities and Exchange Board of India (Appeal to Securities Appellate Tribunal) (Amendment) Regulations, 2000 vide No. S.O. 278 (E); (i) on May 29, 2001 by Securities and Exchange Board of India (Investment Advice by Intermediaries) (Amendment) Regulations, 2001 vide No. S.O. 476 (E); (j) on September 27, 2002 by Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 vide No. S.O. 1045 (E); (k) on October 1, 2003 by Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2003 vide No. S.O. 1154 (E); (l) on March 10, 2004 by Securities and Exchange Board of India (Criteria for Fit and Proper Person) Regulations, 2004 vide No. S.O. 398 (E); (m) on April 18, 2006 by Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2006 vide No. S.O. ................... 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