SEBI allows payment banks to act as investment bankers

In order to provide easy access to investors to take part openly and rights issues by utilizing different payment avenues, markets regulator Securities and Exchange Board of India (SEBI) on Tuesday allowed payment banks to carry out the activities of investment bankers.

The notice expressed, “SEBI vide notice dated July 30, 2021, amended the SEBI (Bankers to an Issue) Regulations, 1994 (BTI Regulations) accordingly allowing such other banking organization, as might be indicated by the Board, every once in a while, to do the exercises of Bankers to an Issue (BTI), in addition to the scheduled banks”.

Bankers to an issue mean a scheduled bank or such other financial organization as might be determined by Sebi carrying activities, including acceptance of application money, acceptance of allotment or call money, refund of application money and payment of dividend or interest warrants.

Non-scheduled banks, which have approval from RBI, will be eligible to act as BTI, SEBI in the circular.