The Securities and Exchange Board of India (SEBI) has published the Securities and Exchange Board of India (Bankers to an Issue) (Amendment) Regulations, 2024, effective from their publication in the Official Gazette. These changes strengthen the role and responsibilities of bankers when faced with an issue. The main changes include the addition of new services such as the provision of depository services for the management of issues, buybacks, delisting or open offers, and the opening of separate bank accounts for the proceeds of IPOs or other public offerings. Further, Regulation 3 now requires that no individual or entity can act as banker for an issue without obtaining a certificate of registration from SEBI. Existing subregulations have been renumbered and revised to reflect this update. These changes are aimed at streamlining processes, ensuring compliance and expanding the scope of bankers’ activities to an issue falling under SEBI regulations. This amendment builds on the 1994 core regulations, which have been subject to multiple revisions over the years to align with evolving market requirements.

SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, November 20, 2024

SECURITIES AND EXCHANGE BOARD OF INDIA (SINGLE ISSUE BANKERS) (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 (one-issue bankers) Regulations, 1994, namely: –

1. These regulations may be called the Securities and Exchange Board of India (Issue Bankers) (Amendment) Regulations, 2024..

2. They will enter into force on the date of their publication in the Official Journal.

3. In the Securities and Exchange Board of India (Bankers to an Issue) Regulations, 1994, –

I. in rule 2, in clause (aa), after the existing sub-clause (iv), the following new sub-clauses shall be inserted, namely:

“(v) provide escrow services for the purposes of issue management, repurchase, delisting or open offer, as required by relevant regulations established by the Council;

(vi) opening of a separate bank account for depositing the proceeds of the initial public offering/republic offering; And

(vii) any other activities which may be specified by the Council.»

II. in regulation 3, –

I. the following shall be inserted as sub-regulation (1), namely:

“(1) No person may act as banker for any issue unless a certificate of registration has been obtained from the Council under these Regulations.”

ii. in the existing sub-regulations (1A) and (2), the symbols and the number “(1)”, wherever they appear, must be replaced by the symbols and the number “(2)”;

iii. thereafter, the existing sub-regulations (1), (1A) and (2) will 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 were published in the Official Gazette on 14 July 1994 under No. F. SEBI/LE/7/94.

2. The Securities and Exchange Board of India (Bankers to an Issue) Regulations, 1994, were amended on:

I. November 28, 1995 by the Securities and Exchange Board of India (Payment of Fees) (Amendment) Regulations, 1995, Video No. SO 939 (E);

ii. January 5, 1998 by the Securities and Exchange Board of India (Bankers to an Issue) (Amendment) Regulations, 1998, vide No. SO 15 (E);

iii. September 30, 1999 by the Securities and Exchange Board of India (Bankers to an Issue) (Amendment) Regulations, 1999, Video No. SO 800 (E);

iv. March 28, 2000 by the Securities and Exchange Board of India (Appeal to Securities Appellate Tribunal) (Amendment) Regulations, 2000, vide No. SO 278 (E);

v. on May 29, 2001 by the Securities and Exchange Board of India (Investment Advice by Intermediaries) (Amendment) Regulations, 2001, vide No. SO 476 (E);

vi. September 27, 2002, by the Securities and Exchange Board of India (Procedure for holding an inquiry by an investigating officer and imposing penalty), 2002, vide No. SO 1045 (E);

vii. October 1, 2003 by the Securities and Exchange Board of India (Bankers to an Issue) (Amendment) Regulations, 2003, Video No. SO 1159 (E);

viii. March 10, 2004, by the Securities and Exchange Board of India (Fitness and Good Person Test), 2004, vide SO No. 398(E);

ix. September 7, 2006 by the Securities and Exchange Board of India (Bankers to an Issue) (Amendment) Regulations, 2006 vide SO No. 1449 (E);

X. May 26, 2008 by Securities and Exchange Board of India (Intermediaries), 2008, Video No. LAD/NRO/GN/2008/11/126538;

XI. April 13, 2011 by Securities and Exchange Board of India (Amendment in Conditions of Registration of Certain Intermediaries) (Amendment), 2011, vide No. LAD/NRO/GN/2011-12/03/12650;

XII. July 5, 2011 by the Securities and Exchange Board of India (Bankers to an Issue) (Amendment) Regulations, 2011, Video No. LAD-NRO/GN/2011-12/12/21225;

XIII. May 23, 2014 by the Securities and Exchange Board of India (Payment of Fees) (Amendment) Regulations, 2014, Video No. LAD-NRO/GN/2014-15/03/1089;

XIV. December 8, 2016 by the Securities and Exchange Board of India (Amendment in Conditions of Registration of Certain Intermediaries) (Amendment), 2016, vide No. SEBI/LAD/NRO/GN/2016-17/023;

XV. March 6, 2017 by the Securities and Exchange Board of India (Payment of Fees and Method of Payment) (Amendment) (Regulation) 2017, Video No. SEBI/LAD/NRO/GN/2016-17/037;

XVI. March 29, 2017 by Securities and Exchange Board of India (Payment of Fees and Method of Payment) (Amendment) (Regulation) 2017, Video No. SEBI/LAD/NRO/GN/2016-17/38;

XVII. May 30, 2018 by the Securities and Exchange Board of India (Bankers to an Issue) (Amendment) Regulations, 2018, Video No. SEBI/LAD-NRO/GN/2018/16;

XVIII. April 17, 2020 by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2020, Video No. SEBI/LAD-NRO/GN/2020/10;

XIX. May 5, 2021 by Securities and Exchange Board of India (Payment of Fees and Method of Payment) (Amendment) (Regulation) 2021, Video No. SEBI/LAD-NRO/GN/2021/23;

XX. July 30, 2021 by the 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 the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2021, vide No. SEBI/LAD-NRO/GN/2021/30;

XXII. January 17, 2023 by the Securities and Exchange Board of India (Change in Control of Intermediaries) (Amendment) Regulations, 2023, vide No. SEBI/LAD-NRO/GN/2023/115;

XXII. August 16, 2023 by the Securities and Exchange Board of India (Facilitation of Grievance Redressal Mechanism) (Amendment) Regulations, 2023, vide No. SEBI/LAD-NRO/GN/2023/146.