SEBI’s Informal Guidance regarding Registration of Merchant Bankers as Registered Valuers

Under the SEBI (Merchant Bankers) Regulations, 1992 (‘MB Regulations’), merchant bankers registered with SEBI are allowed to carry out only securities market related businesses. Under the Companies (Registered Valuers and Valuation) Rules, 2017, with effect from October 18, 2017, only valuers registered with the Insolvency and Bankruptcy Board of India are allowed to issue valuation reports for the purposes of Companies Act, 2013. Through its informal guidance dated February 4, 2020 to Sundae Capital Advisors Private Limited, SEBI has clarified that Category I merchant bankers may obtain registration as registered valuers; however the assignments taken up by them should be restricted to activities allowed under the MB Regulations.

Published In:Inter Alia - Quarterly Edition - September 2020 [ English
Date: September 30, 2020