The Securities and Exchange Board of India (SEBI) has issued an to the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992 to better regulate the increasing scope of activities of merchant banks. The amended rules outline certification, permitted activities, manner of operations and compliance obligations for merchant bankers.
These amendments emerged following the SEBI’s in , where the proposals sought in August 2024 were discussed.
Introducing the rule 13A, the amended rules specify the permitted activities for merchant bankers. They can manage public issues, qualified institutional placements, rights issues of securities and related advisory or consulting, acquisitions and takeovers, buyback of securities, delisting, compliance, implementing a SEBI scheme, international offering of securities and secondary market transactions of securities listed on a SEBI-recognised stock exchange.
Merchant bankers can also undertake private placement of securities that have already been listed or are proposed for listing and even file placement memoranda of alternative investment funds. They have also been allowed to establish separate business units for activities regulated by the SEBI, or any other financial regulator.
The amended rules, Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2025, came into effect on 1 January 2026.
