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A Legal Analysis Of Bankers To An Issue

Abhishek Jaiswal, Central University of Tamil Nadu

“A banker to an issue shall not any time act in collusion with other agents in a manner that is detrimental to the small investor”.

- M.S Sahoo J, (IDBI Bank Ltd. ., In Re Banker to an Issue, 2009)


The capital market intermediaries are vital links between investors, issuers, and regulators. The market is dynamic and runs smoothly and consistently thanks to the involvement of intermediaries. The function of intermediaries in coordinating a perfect match between market supply and demand for capital is one of promotion and professional knowledge. The objective of the intermediaries is to smooth the investment process and establish a link between investors and users of funds. The market Regulator, SEBI, regulates various intermediaries in the primary and secondary markets through its Regulations for these intermediaries. SEBI made SEBI (BANKERS TO AN ISSUE) REGULATIONS, 1994. This regulation contains IV Chapters and 32 Regulations. SEBI has defined the role of the banker to an issue, the eligibility criteria for granting registration, its functions and responsibilities, and the code of conduct to which it is bound, and its powers to impose penalties on erring entities. All tasks necessary to ensure that the money is gathered and sent to the escrow accounts are carried out by the banker to the issue.


Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878


Accessibility: Open Access

License: Creative Commons 4.0

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​All research articles published in The Indian Journal of Law and Legal Research are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited.


The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the IJLLR or its members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IJLLR.

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