The Securities and Exchange Board of India (SEBI) issued the Securities and Exchange Board of India (Bankers to an Issue) (Amendment) Regulations, 2024, effective from its publication in the Official Gazette. These amendments enhance the role and responsibilities of bankers to an issue. Key changes include adding new services such as providing escrow facilities for issue management, buybacks, delisting, or open offers, and opening separate bank accounts for proceeds from IPOs or further public offers. Additionally, Regulation 3 now mandates that no individual or entity can act as a banker to an issue without obtaining a registration certificate from SEBI. Existing sub-regulations have been renumbered and revised to reflect this update. These changes aim to streamline processes, ensure compliance, and expand the scope of activities for bankers to an issue under SEBI regulations. This amendment builds on the foundational 1994 regulations, which have undergone multiple revisions over the years to align with evolving market requirements.
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 20th November, 2024
SECURITIES AND EXCHANGE BOARD OF INDIA (BANKERS TO AN ISSUE) (AMENDMENT) REGULATIONS, 2024
No. SEBI/LAD-NRO/GN/2024/211.—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 (Bankers to an Issue) Regulations, 1994, namely, –
1. These regulations may be called the Securities and Exchange Board of India (Bankers to an Issue) (Amendment) Regulations, 2024.
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 (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.”
II. 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.
BABITHA RAYUDU, Executive Director
[ADVT.-III/4/Exty./700/2024-25]
Footnotes:
1. The Securities and Exchange Board of India (Bankers to an Issue) Regulations, 1994 was published in the Official Gazette on July 14, 1994 vide F. No. SEBI/LE/7/94.
2. The Securities and Exchange Board of India (Bankers to an Issue) Regulations, 1994 was amended on,-
i. November 28, 1995 by Securities and Exchange Board of India (Payment of Fees) (Amendment) Regulations, 1995 vide No. S.O. 939 (E);
ii. January 5, 1998 by Securities and Exchange Board of India (Bankers to an Issue) (Amendment) Regulations, 1998 vide No. S.O. 15 (E);
iii. September 30, 1999 by Securities and Exchange Board of India (Bankers to an Issue) (Amendment) Regulations, 1999 vide No. S.O. 800 (E);
iv. March 28, 2000 by Securities and Exchange Board of India (Appeal to Securities Appellate Tribunal) (Amendment) Regulations, 2000 vide No. S.O. 278 (E);
v. May 29, 2001 by Securities and Exchange Board of India (Investment Advice by Intermediaries) (Amendment) Regulations, 2001 vide No. S.O. 476 (E);
vi. 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);
vii. October 1, 2003 by Securities and Exchange Board of India (Bankers to an Issue) (Amendment) Regulations, 2003 vide No. S.O. 1159 (E);
viii. March 10, 2004 by Securities and Exchange Board of India (Criteria for Fit and Proper Person) Regulations, 2004 vide S.O. No. 398(E);
ix. September 7, 2006 by Securities and Exchange Board of India (Bankers to an Issue) (Amendment) Regulations, 2006 vide S.O No.1449 (E);
x. May 26, 2008 by Securities and Exchange Board of India (Intermediaries) Regulations, 2008 vide No. LAD/NRO/GN/2008/11/126538;
xi. April 13, 2011 by Securities and Exchange Board of India (Change in Conditions of Registration of Certain Intermediaries) (Amendment) Regulations, 2011 vide No. LAD/NRO/GN/2011-12/03/12650;
xii. July 5, 2011 by Securities and Exchange Board of India (Bankers to an Issue) (Amendment) Regulations, 2011 vide No. LAD-NRO/GN/2011-12/12/21225;
xiii. May 23, 2014 by Securities and Exchange Board of India (Payment of Fees) (Amendment) Regulations, 2014 vide No. LAD-NRO/GN/2014-15/03/1089;
xiv. December 8, 2016 by Securities and Exchange Board of India (Change in Conditions of Registration of Certain Intermediaries) (Amendment) Regulations, 2016 vide No. SEBI/LAD/NRO/GN/2016-17/023;
xv. March 6, 2017 by Securities and Exchange Board of India (Payment of Fees and Mode of Payment) (Amendment) (Regulations) 2017 vide No. SEBI/LAD/NRO/GN/2016-17/037;
xvi. March 29, 2017 by Securities and Exchange Board of India (Payment of Fees and Mode of Payment) (Amendment) (Regulations) 2017 vide No. SEBI/LAD/NRO/GN/2016-17/38;
xvii. May 30, 2018 by Securities and Exchange Board of India (Bankers to an Issue) (Amendment) Regulations, 2018 vide No. SEBI/LAD-NRO/GN/2018/16;
xviii. April 17, 2020 by Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2020 vide No. SEBI/LAD-NRO/GN/2020/10;
xix. May 5, 2021 by Securities and Exchange Board of India (Payment of Fees and Mode of Payment) (Amendment) (Regulations) 2021 vide No. SEBI/LAD-NRO/GN/2021/23;
xx. July 30, 2021 by Securities and Exchange Board of India (Bankers to an Issue) (Amendment) Regulations, 2021 vide No. SEBI/LAD-NRO/GN/2021/26;
xxi. August 3, 2021 by Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2021 vide No. SEBI/LAD-NRO/GN/2021/30;
xxii. January 17, 2023 by Securities and Exchange Board of India (Change in Control in Intermediaries) (Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/115;
xxiii. August 16, 2023 by Securities and Exchange Board of India (Facilitation of Grievance Redressal Mechanism) (Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/146.
