SECURITIES AND EXCHANGE BOARD OF INDIA
PRIMARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
RMB CIRCULAR NO. 2(98-99) August 11, 1998
To All the registered merchant bankers
The Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, was amended on December 09, 1997 by the SEBI (Merchant Bankers) Amendment Regulations, 1997, vide. S.O. 837(E), which prohibited registered merchant bankers from undertaking any activity other than that in the securities market. The said Regulations were further amended by the SEBI(Merchant Bankers) Amendment Regulations,1998 vide . S.O. 74(E) dated January 21, 1998, which granted time upto June 30,1998, to the existing registered merchant bankers to segregate those activities undertaken by them that are not related to the securities market.
In view of these amendments, the registered merchant bankers carrying on any activity other than that in the securities market are required to either discontinue the activities other than those relating to the securities market with effect from June 30, 1998 or are required to transfer the merchant banking activities to a new entity, which entity would be required to be registered with SEBI as a merchant banker and can undertake only those activities that are related to the securities market.
Subsequent to these amendments, every registered merchant banker, (including a merchant banker who is an NBFC or is undertaking activities other than those related to the securities market and who has neither applied for transfer of certificate of registration to a new entity nor submitted an undertaking to SEBI that it will not carry on any activity other than those related to the securities market, ) will be required to submit to SEBI, within 7 days from the date of the issue of this Circular, such information as provided for in the Annexure, accompanied by documentary proof, wherever necessary.
Sd/-
M.Natarajan
Division Chief
Primary Market Department
ANNEXURE
1. Name of the entity
2. Date of the grant of the certificate of registration
3. Date of expiry of the certificate of registration
1. IF THE MERCHANT BANKER HAS DISCONTINUED ALL ACTIVITIES IN THE EXISTING COMPANY, EXCEPT THOSE ACTIVITIES RELATING TO THE SECURITIES MARKET
then the following particulars may be furnished :-
- Details of the activities other than those in the securities market (including NBFC activities ) undertaken by the existing company which have been discontinued.
- Details of the activities that the entity proposes to undertake
- An undertaking that no activity except those related to the securities market or activities which do not require registration/have been granted exemption from registration as an NBFC from RBI, will be undertaken.
2. IF THE MERCHANT BANKER HAS APPLIED FOR TRANSFER OF REGISTRATRION TO ANOTHER ENTITY
then the following particulars may be furnished:-
1. Date of the application, seeking a transfer of the certificate of registration
2. Name of the transferee company
3. Details of the activities other than that in the securities market (including
NBFC activities ) undertaken by the existing company( i.e transferor
company).
(d) Details of the activities that the transferee company proposes to
undertake
3. IF THE MERCHANT BANKER IS CONTINUING ACTIVITIES
OTHER THAN THOSE OF THE SECURITIES MARKET AND HAS
NOT COMPLIED TO EITEHR A OR B ABOVE.
then the following particulars may be provided:-
- Date of the surrender of certificate of registration.
- The list of all the activities that are being carried out including those activities which do not relate to the securities market.
- Details of enquiry initiated with respect to the merchant banking activity
- An undertaking to remain liable for all acts of omission and commission committed with reference to the merchant banking activities.
- Details of fees outstanding till date
- Details of pending assignment relating to merchant banking activities