SEBI ups vigil on public offers, bank in spotlight | business | Hindustan Times
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SEBI ups vigil on public offers, bank in spotlight

business Updated: Jun 28, 2010 01:03 IST

Market watchdog SEBI has upped the ante for investment bankers seeking to advise clients on public offers.

The Securities and Exchanges Board of India (SEBI) will scrutinise the investment banking entity concerned, and even group entities, promoters, directors and key management persons connected to it.

Investment banks must seek fresh SEBI nod for new registrations as well as licence renewal as bankers to public issues.

Factors that SEBI would consider before granting approvals include any disciplinary proceedings, such as enquiry, adjudication, prosecution or any other action such as suspension or debarment from the market.

Besides, even adverse comments like warning and caution initiated by or pending with SEBI against the banker or its associates would be taken into account.

SEBI has in a circular asked bankers to file an “Additional Information Sheet” detailing their disclosures and related documentary proofs, along with their application for registration or renewal as bankers to an issue.