The Securities and Exchange Board of India on 30th March, 2021 has issued the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2021. The amendment provides that every merchant banker acting as an underwriter shall enter into an agreement with each body corporate on whose behalf it is acting as an underwriter and the said agreement shall, amongst other things, provide for the following, namely—
(i) The period for which the agreement shall be in force;
(ii) The allocation of duties and responsibilities between the underwriter and the client
(iii) The amount of underwriting obligations;
(iv) The period, within which the underwriter has to subscribe to the issue after being intimated by or on behalf of such body corporate;
(v) The amount of commission or brokerage payable to the underwriter;
(vi)Details of arrangements, if any, made by the underwriter for fulfilling the underwriting obligations.
