Securities and Exchange Board of India (Merchant Bankers) Amendment Regulations, 1997. - S.O. No.837(E) - SEBI/LE/2228/12/97 - SEBI

SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION Mumbai, the 9th December, 1997 S.O. 837(E).- In exercise of the powers conferred by sub-section (1) of section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Securities and Exchange Board of India hereby makes the following regulations further to amend the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992. 1. (i) These regulations shall be called the Securities and Exchange Board of India (Merchant Bankers) Amendment Regulations, 1997. (ii) They shall come into force on the date of their publication in the Official Gazette. 2. In the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992 (hereinafter referred to as the said regulations),- (a) in regulation 3, after sub-regulation (2) a new sub-regulation (2A) shall be added as follows, namely: 2A-Notwithstanding anything contained in this regulation, with effect from 9th December, 1997, (i) an application under sub-regulation (2) can be made only for carrying on the activities mentioned in clause (a) therein, and (ii) an applicant can carry on the activity as underwriter only if he obtains separate certificate of registration under the provisions of Securities and Exchange Board of India (Underwriters) Regulations, 1993, and (iii) an applicant can carry on the activity as portfolio manager only if he obtains separate certificate of registration under the provisions of Securities and Exchange Board of India (Portfolio manager) Regulations, 1993. b. (i) in regulation 6 clause (a) shall be renumbered as (aa) and new clause (a) before renumbered clause (aa) shall be inserted as follows, namely: (a) the applicant shall be a body corporate other than a non-banking financial company as defined under clause (f) of section 45-1 of the Reserve Bank of India Act, 1934 (2 of 1934) as amended from time to time ; (ii) in regulation 6, a new clause (gg) before clause (h) and after clause (g) shall be inserted, namely; (gg) the applicant is a fit and proper person; c. in regulation 8; (i) in sub-regulation (1), the words and send an intimation to the applicant mentioning the category for which the Board has granted certificate shall be omitted; (ii) sub-regulations (2) and (3) shall be omitted; (iii) in sub-regulation (4), the words for the category for which the registration is granted appearing after the words pay the fees and before the words in accordance with Schedule IT' shall be omitted; (iv) the proviso to sub-regulation (4) shall be omitted. d. in regulation 9, the following modifications shall be made, namely; (i) in sub-regulation (3), the words mentioning the category for which the Board has granted certificate appearing after the word applicant shall be omitted; (ii) sub-regulations (4) and (5) shall be omitted; (iii) in sub-regulation (6) the words for the category for which the registration is granted appearing after the words pay the fees and before the words in accordance with Schedule II' shall be omitted; (iv) the proviso to sub-regulation (6) shall be omitted. e. After regulation 13, new regulation 13A shall be added as follows, namely : Merchant banker not to associate with any business other than that of the securities market- 13A-No merchant banker, other than a bank or a 1 [ Public Financial Institution ] , who has been granted a certificate of registration under these regulations shall carry on any business other than that in the securities market. Notwithstanding anything contained above, a merchant banker who prior to the date of notification of the securities and exchange board of India (Merchant Bankers) Amendment Regulations, 1997, has entered into a contract in respect of a business other than that of the securities market, may, if he so desires, discharge his obligations under such contract Explanation -for the purposes of this regulation : (i) A bank shall mean a banking company as defined under section 5 of the Banking Regulations Act, 1949 (10 of 1949) and the corresponding new bank set up under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 (5 of 1970) and Banking Companies (Acquisition and Transfer of Undertaking) Act 1980(40 of 1980), State Bank of India Act, 1955 (23 of 1955) and State Bank of India (Subsidiary Banks) Act 1959 (38 of 1959). (ii) A public financial institution shall have the same meaning as assigned to the term under Section 4 A of the Companies Act 1956 (1 of 1956) and shall include Industrial Development Corporations and Financial Corporations established by the Central Government or State Governments as the case may be. f. in Form A contained in Schedule I, after the words Name of Applicant the words Applied for: II/III/IV shall be omitted. g. in Form B contained in Schedule I, (i) in paragraph 1, the figures 2 [ II/III/IV ] appearing after the word Category I and before the words subject to the conditions shall be omitted; (ii) in paragraph 1 after the words 2. Investment Adviser the words 3. Underwriting of Issue and the words 4. Portfolio Management Service shall be omitted.; [F. No. SEBI/LE/2228/12/97] D.R. MEHTA, Chairman FOOTE NOTE.- 1. The principal regulation SEBI (Merchant Bankers) Regulations, 1992 was published in official Gazette of India on 22nd December, 1992 vide F. No. 20/15/SE/92. 2. It was subsequently amended on 7th September, 1995 by SEBI (Merchant Bankers) Amendment Regulations, 1995 vide F. No. SEBI/LE-1/9/95 and on November 28, 1995 by SEBI (Payment of Fees) Amendment Regulations, 1995 vide S. O. 939 (E) and was further amended on June 6,1996 by SEBI (Merchant Bankers) Amendment Regulations, 1996 vide F. No. SEBI/LE-III/5/96. ********* Notes:- 1. Corrected vide CORRIGENDUM dated 15-12-1997 before it was read as financial institution 2. Corrected vide CORRIGENDUM dated 15-12-1997 before it was read as II/III/V