Extension of timelines for compliance with certain provisions of Circular dated January 02, 2026
Summary
SEBI extends compliance timelines for Merchant Bankers regarding the implementation of Separate Business Units and net worth requirements. The new deadlines shift from July 2026 and January 2027/2028 to December 31, 2026, and March 31, 2027/2028 respectively. This extension is granted based on industry representations concerning operational challenges in establishing necessary systems.
Text
Transfer of activities to Separate Business Unit(s) in terms of Regulation 13A(2) of the MB Regulations and Clause 11.2.1 of the MB Circular shall be completed by December 31, 2026.
Compliance with Clause 11.2.10 of the MB Circular shall be achieved by December 31, 2026.
Compliance with net worth requirements under Regulation 7 of the MB Regulations – Phase I shall be met by March 31, 2027.
Compliance with net worth requirements under Regulation 7 of the MB Regulations – Phase II shall be met by March 31, 2028.
Compliance with liquid net worth requirements under Regulation 7A of the MB Regulations – Phase I shall be met by March 31, 2027.
Compliance with liquid net worth requirements under Regulation 7A of the MB Regulations – Phase II shall be met by March 31, 2028.
Intimation to SEBI regarding categorisation as Category I or Category II Merchant Banker shall be submitted by March 31, 2027.
All other provisions of the MB Circular dated January 02, 2026 shall remain unchanged and shall be complied by Merchant Bankers.
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 45 of the SEBI (Merchant Bankers) Regulations, 1992.
Source: SecMarx — Extension of timelines for compliance with certain provisions of Circular dated January 02, 2026. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.