On 11 June 2026, the Securities and Exchange Board of India (SEBI) issued a circular granting additional time to Merchant Bankers (MBs) for complying with key regulatory requirements introduced under the SEBI (Merchant Bankers) (Amendment) Regulations, 2025.
Key Highlights:
- SEBI has extended the compliance timelines in response to representations from the industry highlighting challenges in implementing the Separate Business Unit (SBU) framework and aligning compliance milestones with the financial year-end.
- The requirement to transfer permitted activities to SBUs, along with compliance with SEBI circular dated 2 January 2026, must now be completed by 31 December 2026, instead of 3 July 2026.
- Compliance with the revised net worth requirements has been rescheduled as follows:
- Phase I — 31 March 2027 (earlier 2 January 2027)
- Phase II — 31 March 2028 (earlier 2 January 2028)
- Compliance with the revised liquid net worth requirements has been rescheduled as follows:
- Phase I — 31 March 2027
- Phase II — 31 March 2028
- The deadline for intimation to SEBI regarding categorisation as a Category I or Category II Merchant Banker has been extended to 31 March 2027.
-
Other provisions of the SEBI circular dated 2 January 2026 remain unchanged and continue to be applicable.
Also Read: SEBI’s conflicts of interest framework
[SEBI Circular on Extension of timelines, dt. 11-6-2026]
