Regulation 13A - Merchant banker not to associate with any business other than that of the securities market - Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992

1 [Merchant banker not to associate with any business other than that of the securities market. 13A. No merchant banker, other than a Bank or a Public Financial Institution, who has been granted a certificate of registration under these regulations shall 3 [after June 30, 1998] carry on any business other than that in the securities market. Notwithstanding anything contained above, a merchant banker who prior to the date of notification of the Securities and Exchange Board of India (Merchant Bankers) Amendment Regulations, 1997, has entered into a contract in respect of a business other than that of the securities market may, if 6 [ it ] so desires, discharge 7 [ its ] obligations under such contract: 4 [Provided that a merchant banker who has been granted certificate of registration to act .as primary or satellite dealer by Reserve Bank of India, may carry on such business as may be permitted by the Reserve Bank of India.] 8 [ Provided further that a merchant banker, that has been granted a certificate of registration under these regulations, shall ensure market making in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. ] Explanation: For the purposes of this regulation,- (i) A bank shall mean a banking company as defined under section 5 of the Banking Regulation Act, 1949 (10 of 1949), and the corresponding new bank set up under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 (5 of 1970), and the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1980 (40 of 1980), State Bank of India Act, 1955 (23 of 1955) and State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959). (ii) A public financial institution shall have the same meaning as assigned to the term under 9 [ sub-section (72) of section 2 of the Companies Act, 2013 ] and shall include Industrial Development Corporations and Financial Corporations established by the Central Government or State Governments, as the case may be.] ************ NOTES:- 1 Inserted by the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 1997 w.e.f, 09.12.1997. 2 Substituted for the words Financial Institution by the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 1997 w.e.f. 15.12.1997. 3 Words after June 30th, 1998 inserted by the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 1998 w.e.f, 21-01-1998. 4 Proviso to regulation 13A was inserted by the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 1999 w.e.f, 17.11.1999. 5 Proviso to regulation 13A was inserted by the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2010 w.e.f, 13.04.2010. 6. Substituted vide F. No. SEBI/LAD-NRO/GN/2024/214 dated 29-11-2024 before it was read as, he 7. Substituted vide F. No. SEBI/LAD-NRO/GN/2024/214 dated 29-11-2024 before it was read as, his 8. Substituted vide F. No. SEBI/LAD-NRO/GN/2024/214 dated 29-11-2024 before it was read as, 5 [Provided further that a merchant banker, who has been granted certificate of registration under these regulations, may ensure market making in accordance with Chapter XA of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009] 9. Substituted vide F. No. SEBI/LAD-NRO/GN/2024/214 dated 29-11-2024 before it was read as, section 4A of the Companies Act, 1956 (1 of 1956)