New process for Merchant Bankers is going to start next month, SEBI gave information
SEBI The Securities and Exchange Board of India (SEBI) has made an announcement for merchant bankers today. SEBI said that it has streamlined the process of obtaining approval for bankers. SEBI has given this information in its circular. This process will start from 1st September. In this, the applicant will have to apply online.
The Securities and Exchange Board of India (SEBI) on Thursday streamlined the process of obtaining prior approval for proposed changes in the regulation of merchant bankers and bankers to an issue. SEBI said in a circular that this new process will come into effect from September 1.
Under this process, an online application has to be made to SEBI for prior approval through its intermediary portal. Along with the online application in the portal, various other information like own name, acquirer will have to be given.
SEBI told that details of pending complaints will also have to be given in it. Apart from this, information about the payment of all fees payable to SEBI will also have to be given. In addition to this process, if the existing intermediary is a registered stock broker, clearing member, or depository participant, he will have to obtain approval from all stock exchanges, clearing corporations, and depositories where the existing intermediary is a member or depository participant.
The applicant has to file an application for fresh registration as per the change in control within the date given by SEBI. Further SEBI has put in place a streamlined process that includes a scheme of arrangement. This requires the approval of the National Company Law Tribunal (NCLT).
The applicant has to file with SEBI before filing the application in NCLT. The validity of the approval from SEBI will be three months from the date of issue, within which the relevant application shall be made in NCLT. The applicant has to submit some documents online.
