SEBI Issues Master Circular To Streamline Merchant Banking Regulations

Posted On - 26 October, 2023 • By - King Stubb & Kasiva

[1]The Securities and Exchange Board of India (SEBI) has taken a significant step in regulatory streamlining by issuing a Master Circular for Merchant Bankers on September 27, 2023. This Master Circular serves as a comprehensive repository, consolidating various circulars for the convenience of stakeholders.

One of the key highlights of this Master Circular is its rescission of previous circulars related to Merchant Bankers. This means that all directions and instructions contained in the circulars listed in the Appendix to this Master Circular are now rescinded insofar as they pertain to Merchant Bankers.

However, it’s important to note that actions taken, or applications made under the rescinded circulars prior to their withdrawal will remain valid. They will be deemed to have been conducted under the corresponding provisions of this newly issued Master Circular. This provision ensures continuity and legal clarity for ongoing activities in the merchant banking sector.

SEBI’s decision to issue this Master Circular aligns with its ongoing efforts to simplify and rationalize regulatory guidelines, making them more accessible and user-friendly for Merchant Bankers. It represents a significant milestone in the evolution of India’s financial regulatory framework.

This development will be welcomed by the merchant banking community, as it not only provides a consolidated reference point but also offers assurance regarding the validity of previous actions and pending applications. It is a step forward in enhancing transparency and ease of doing business in the Indian financial market.

In conclusion, SEBI’s Master Circular for Merchant Bankers is a pivotal move towards regulatory efficiency and clarity. It underscores SEBI’s commitment to fostering a robust and accessible regulatory environment, ultimately benefiting all stakeholders in the financial sector.

[1] https://www.sebi.gov.in/legal/master-circulars/sep-2023/master-circular-for-merchant-bankers_77368.html