Regulation 22B - General responsibilities of a merchant banker as an underwriter - Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992

1 [ General responsibilities of a merchant banker as an underwriter. 22B. (1) A merchant banker acting as an underwriter shall not derive any direct or indirect benefit from underwriting the issue other than the commission or brokerage payable under the agreement for underwriting entered with client. (2) At any point of time, the total underwriting obligations under all the agreements shall not exceed twenty times of the net worth of the merchant banker. 2 [ (3) A merchant banker, if called upon, pursuant to an agreement for underwriting to subscribe to the securities of a body corporate, shall subscribe to the said securities prior to the finalisation of the basis of allotment. ]] ************ NOTES:- 1. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/13 dated 30-03-2021 2. Substituted vide F. No. SEBI/LAD-NRO/GN/2024/214 dated 29-11-2024 before it was read as, (3) Every merchant banker acting as an underwriter, in the event of being called upon to subscribe for securities of a body corporate pursuant to an agreement for underwriting, shall subscribe to such securities within 45 days of the receipt of such intimation from such body corporate.