The Securities and Exchange Board of India vide its notification dated 30th July 2021 has published the Securities and Exchange Board of India (Bankers to an Issue) (Amendment) Regulations, 2021 to further amend the Securities and Exchange Board of India (Bankers to an Issue) Regulations, 1994.
The amendment substitutes the term “banker to an issue” under the definition clause as follows:
banker to an issue, means a scheduled bank or such other banking company as may be specified by the Board from time to time, carrying on any of the activities, including :— (i) acceptance of application and application monies; (ii) acceptance of allotment or call monies; (iii) refund of application monies; (iv) payment of dividend or interest warrants;
Further regulation 22 specifies the action on inspection or investigation report which has been substituted as follows:
The Board shall, after consideration of inspection or investigation report, take such action as it may deem fit and appropriate including action under Chapter V of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008.
Chapter V of SEBI intermediaries’ regulation deals with Action in case of default and manner of suspension or cancellation of certificate.
