Abhishek Jaiswal, Central University of Tamil Nadu
“A banker to an issue shall not any time act in collusion with other agents in a manner that is detrimental to the small investor”.
- M.S Sahoo J, (IDBI Bank Ltd. ., In Re Banker to an Issue, 2009)
ABSTRACT
The capital market intermediaries are vital links between investors, issuers, and regulators. The market is dynamic and runs smoothly and consistently thanks to the involvement of intermediaries. The function of intermediaries in coordinating a perfect match between market supply and demand for capital is one of promotion and professional knowledge. The objective of the intermediaries is to smooth the investment process and establish a link between investors and users of funds. The market Regulator, SEBI, regulates various intermediaries in the primary and secondary markets through its Regulations for these intermediaries. SEBI made SEBI (BANKERS TO AN ISSUE) REGULATIONS, 1994. This regulation contains IV Chapters and 32 Regulations. SEBI has defined the role of the banker to an issue, the eligibility criteria for granting registration, its functions and responsibilities, and the code of conduct to which it is bound, and its powers to impose penalties on erring entities. All tasks necessary to ensure that the money is gathered and sent to the escrow accounts are carried out by the banker to the issue.
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