Regulatory framework of Merchant Banking

Made By: Charu Dharamwani Kirti Khattar

Bankers To An Issue  The bankers to an issue are engaged in activities such as acceptance of application alongwith application money from the investors in respect of issues of capital and refund of application money. .

SEBI grants registration with reference to the following requirements: – The applicant has the necessary infrastructure. communication – – – – and the data processing facilities and manpower. . The applicant is not involved in any litigation connected with the securities market.  He can apply for the renewal of his registration three months before the expiry of the certificate.Registration  Person must obtain a certificate of registration from the SEBI. Grant of a certificate is in the interest of the investors. and The applicant is a fit and proper person. The applicant is a scheduled bank.

Code of Conduct .

.  Purpose is to ensure that the books of accounts are maintained and to investigate into the complaints received from the investors against the bankers to an issue.Inspection  Inspection is done by RBI upon the request of SEBI.

Liability for Action in Case of Default  A banker to an issue who controvenes any provision of the SEBI Act/Rules /Regulations would be liable for actions specified therein including the actions under the SEBI Intermediaries Regulation. . 2008.

A certificate /renewal is valid for three years.  Portfolio management can be– Discretionary – Non-discretionary  In order to act as a portfolio manager. the management/administration of portfolio of securities/funds of clients. a certificate of registration from the SEBI is mandatory. . whether discretionary portfolio manager or otherwise. on behalf of the client.Portfolio Managers  Portfolio Managers are persons who advice/direct/undertake.

in terms of capital plus free reserves excluding revaluation reserves minus accumulated losses an deferred expenditure not written off . the SEBI takes into account matters such as– Necessary infrastructure like adequate office staff. equipment and manpower. that is.Registration  While considering the application for registration. – A person directly/indirectly connected with the applicant. – Employment of a minimum of two persons who between them have at least five years experience in related activities in portfolio management/stock broking/investment management. associate/subsidiary/inter-connected or group company that has been refused registration. – Capital adequacy of not less than a net worth of Rs 2 crore.

.70 5078438 4 !479144 .3.078 .078 .!479144./.0.3.

9./70.

039 0907 /8.07 47 490780 90 2.0 43 -0.:3/079.1 41 90 .02039.70943.3.3.7 5479144 2.

:7908..943 41 5479144 41 80./23897.

3/.7 43 /8.0398 !479144 2. .02039 ..07 .70943.90 .7 3 47/07 94 ..70943.9 .947  . 5479144 2.3..943 1742 90 $ 8 2..3 -0 8.3.8 .0791.1:3/8 41 .90 41 70897.0791.

78 ..7030. 8 ./ 147 9700 0.

232:2 41 94 5078438 4 -09003 902 .438/073 90 .0 0.02039..943 90 $ 9.943 0 .897:.89 1.55. .7 317.9:70 0 .90 411..4:39 2.908 3 5479144 2..#0897.0 3 70.9.3.9 0.35407 2542039 41 .08 394 .11 06:52039 .78 050703.3/ 2.0 89.088..0 .99078 8:../06:.90/ .8 0.943 147 70897.

894. -743.

3.3.02039  507843 /70.9.0892039 2.

9 8 .90/ 9 90 .884.3/70.90..39 9..4330.9 .55.

7.8:-8/.

08 23:8 .3 .59.3 /010770/ 0503/9:70 349 79903 411 .59..7470 3 90728 41 .. 309 479 41 #8  ..4330.3907 .425.943 ./06:.08 0..9 .:.90/ 47 74:5 .90/ 48808 .:/3 70. 41 349 088 9.:2:. 5:8 1700 70807.943 70807.3 9. ..8 -003 701:80/ 70897.

Sign up to vote on this title
UsefulNot useful