Markets regulator Sebi has revamped the rules for merchant bankers (MBs) by introducing a capital adequacy framework, requiring firms to maintain a liquid net worth and mandating a minimum level of revenue from permitted activities.

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The revised rules are intended to strengthen financial stability, enhance risk management, and promote ease of doing business.

Wider scope for merchant bankers

Under the new framework, Sebi has also permitted merchant bankers to carry out activities beyond its regulatory scope within the same firm, subject to specific conditions.

In its notification dated December 3, the regulator said a merchant banker can undertake activities which fall under the purview of any other Financial

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