A N Keerthivasan, Central University of Tamil Nadu
ABSTRACT
In India, there has been a growing demand for capital from businesses in the corporate sector. To meet this demand, companies have turned to the capital market for long-term financing through stock and debt issuance. This has led to increased participation in the merchant banking sector by commercial banks, stock brokers, and financial advisory businesses. Merchant bankers play an important role in the Indian financial market by providing various services, including underwriting, issue management, and advisory services. Hence the regulatory framework was established by SEBI with the aim to ensure fair and transparent practices and protect investors’ interests in the securities market. This analysis examines the key regulations governing merchant bankers, such as the SEBI (Merchant Bankers) Regulations, and highlights their impact on the functioning of merchant bankers. Despite the regulatory framework established by SEBI, there are instances of non- compliance by merchant bankers. Some may fail to adhere to the code of conduct, disclosure requirements, or due diligence obligations outlined by SEBI.
