Definition of Bankers to an Issue

Issue means an offer of sale/purchase of security by anybody corporate/person/group of persons on his/its/their behalf to or from the public/holders of securities of the body corporate/person/group of persons.

Registration

A person for acting as a banker to an issue must obtain a certificate of registration from the SEBI.

Requirements

The applicants must have necessary infrastructure, communication and data processing facilities and manpower to effectively discharge his functions as a banker to an issue.

The applicant/any of the directors of the applicant should not have been involved in any litigation connected with the securities market.

The applicant should not have been convicted of any economic offence.

The applicant must be a scheduled bank.

The grant of certificate should be in the interest of the investors.

The applicant should be a fit and proper person as per the criteria specified in the SEBI Intermediaries Regulation 2008.

Obligations and Responsibilities of Bankers to an Issue

Furnishing information to SEBI: The bankers to an issue must furnish the following information if required by SEBI

No. of issues for which he is a banker

No. of applications received

Details of application money received

Date of forwarding the applications to the issuing company/ Registrar to the issue.

Date and amount of refund to the investors

Maintenance of accounts and Documents: The banker must maintain records/documents/accounts for furnishing information to SEBI when they require. He must keep the records for 3 years.

Entering agreement with issuing companies: The agreement entered into by the bankers with the issuing company must provide for the following:

No.of collection centers at which applications/application money received is forwarded to registrar.

Submission of daily statement stating the no. of applications and amount of money received by the investors.