G.S.R. 937 (E) In
exercise of the powers conferred by section 29 of the Securities and Exchange
Board of India , Act 1992 (15 of 1992), the Central Government hereby makes the
following rules, namely :- (1)
These rules may be called the Securities and Exchange Board
of India (Merchant Bankers) Rules, 1992 (2)
They shall come into force on the date of their publication
in the Official Gazette. In these rules,
unless the context otherwise requires: - a.
"Act" means
the Securities and Exchange Board of India Act, 1992 (15 of 1992); b.
"body
corporate" shall have the meaning assigned to it in or under clause (7) of
section 2 of the Companies Act, 1956 (1 of 1956); c.
"certificate"
means a certificate of registration issued by the Board; d.
"issue' means -
i.
public offer of
securities for sale;
ii.
sale or purchase of
securities or transfer thereof by any other means, by any body corporate or any
person on his own behalf or on behalf of the body corporate through a merchant
banker; e.
"merchant
banker" means any person who is engaged in the business of issue
management either by making arrangements regarding selling , buying or
subscribing to securities as manager, consultant, adviser or rendering
corporate advisory service in relation to such issue management; f.
"regulations"
means the Securities and Exchange Board of India (Merchant Bankers)
Regulations, 1992. No person shall carry on any activity as a merchant
banker unless he holds a certificate granted by the Board under the
regulations. Provided that such person, who were
engaged as merchant banker prior to the coming into force of the Act, may
continue to carry on activity as merchant banker if he has made an application
for such registration till the disposal of such application. The Board may grant or renew a
certificate to a merchant banker subject to the following conditions , namely; a.
the merchant banker,
in case of nay change in its status and constitution, shall obtain the prior
permission of the Board to carry on its activities as a merchant banker' b.
he shall pay the
amount of fees for registration or renewal, as the case may be, in the manner
provided in the regulations; c.
he shall take
adequate steps for redressal of grievances of the investors within one month of
the date of the receipt of the complaint and keep the Board informed about the
number, nature and other particulars of the complaints received; d.
he shall abide by the
rules and regulations made under the Act in respect of the activities carried
on by the merchant banker. The certificate of registration or its renewal, as the
case may be, issued under rule 4 shall be valid for a period of three years
from the date of its issue to the applicant. SECURITIES AND EXCHANGE
BOARD OF INDIA (MERCHANT BANKERS) RULES, 1992