The purpose of this regulation was to establish a regulatory framework for commercial bankers, their eligibility, responsibility and continuity in the securities market.
Commercial bankers play a key role in the primary market and have been entrusted with the responsibility of ensuring due diligence, maintaining the integrity of the primary market and ensuring compliance with relevant laws on their own behalf and on behalf of issuers.
As a result of the evolution of the stock markets and the general increase compliance requirementsThe roles, responsibilities and businesses assumed by bankers in the primary market have increased significantly.
According to the new changes proposed in a consultation paper, Sebi seeks to review the activities of bankers and make changes in capital adequacy requirementsThe regulator has also proposed the introduction of a minimum net worth Apart from revising the legal structures that will be allowed for granting registration, among the proposed changes, Sebi said that directors, key personnel, compliance officers and their family members cannot hold securities in the issuing company. The regulator said the existing MB Regulations should be aligned with the amendments in other SEBI Regulations and with the current ecosystem and from now on the review.
Sebi also wanted clarity on the activities that would be allowed to bankers and ensure that only serious players continue to operate in the securities market.
The regulator also proposes to eliminate provisions that have become reductive and have ceased to be useful.
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