SEBI (Merchant Bankers) (Amendment) Regulations, 2025 were notified on December 05, 2025, inter alia, revising the net worth and liquid net worth requirements applicable to Merchant Bankers and introducing Regulation 13A relating to activities that may be undertaken by Merchant Bankers and segregation of other activities through Separate Business Units (“SBUs”). In this regard, SEBI issued Circular No. HO/49/11/11(106)2025-CFD-RACDIL3/I/1796/2026 dated January 02, 2026, inter alia, specifying the operational framework, implementation timelines and compliance requirements for Merchant Bankers.
Based on representations received from the industry highlighting operational challenges in establishing the necessary systems and processes for implementation of the SBU framework and seeking alignment of the compliance timeline for net worth and liquid net worth requirements with the end of the financial year, it has been decided to grant additional time for compliance with the aforesaid requirements. Accordingly, SEBI, vide this circular, has prescribed the new timelines under the circular dated January 02, 2026.
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