The Securities and Exchange Board of India (SEBI) has extended the timelines for merchant bankers to comply with certain regulatory provisions related to separate business units (SBUs), net worth, and liquid net worth requirements, as per PTI news report.
The decision follows representations from industry participants regarding operational challenges in implementing the new framework.
Under the revised timeline, merchant bankers will now have until December 31, 2026, to transfer activities to separate business units in accordance with the SEBI (Merchant Bankers) Regulations.
The earlier deadline for compliance was July 3, 2026.
SEBI has also extended the compliance deadlines for enhanced net worth requirements applicable to merchant bankers.
The Phase I deadline has been moved to March 31, 2027, from January 2, 2027, while the Phase II deadline has been extended to March 31, 2028, from January 2, 2028.
The regulator has similarly revised timelines relating to liquid net worth requirements.
Merchant bankers will now be required to comply with Phase I and Phase II liquid net worth norms by March 31, 2027, and March 31, 2028, respectively.
SEBI has extended the deadline for merchant bankers to inform the regulator regarding their classification as Category I or Category II merchant bankers.
The revised deadline for such intimation is March 31, 2027, compared to the earlier deadline of January 2, 2027.
According to SEBI, the extension follows representations received from market participants regarding challenges in establishing the systems and processes required under the SBU framework.
The regulator also noted requests from the industry to align compliance timelines with the financial year-end.
The provisions are part of the SEBI (Merchant Bankers) Regulations, 2025, which were notified on December 5, 2025.
The regulations introduced revised net worth and liquid net worth requirements and a framework for segregation of activities through separate business units.
Read More: SEBI Considering Specialised Distributors to Boost Debt Products Access!
The revised timelines provide merchant bankers with additional time to implement the SBU framework and comply with enhanced net worth and liquid net worth requirements under the SEBI (Merchant Bankers) Regulations, 2025.
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Published on: Jun 12, 2026, 2:24 PM IST
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