The Securities and Exchange Board of India has extended several implementation deadlines for merchant bankers under its January 2, 2026 operational circular, after industry representations cited operational challenges in setting up the Separate Business Unit framework and sought alignment of capital compliance dates with financial year-end. The changes affect the transfer of activities into Separate Business Units, related compliance under the January circular, phased net worth and liquid net worth requirements, and the deadline for informing the regulator whether a firm will operate as a Category I or Category II merchant banker. The deadline to transfer activities to Separate Business Unit(s) under Regulation 13A(2) and to comply with Clause 11.2.10 of the January circular has been moved from July 3, 2026 to December 31, 2026. Phase I compliance with net worth requirements under Regulation 7, liquid net worth requirements under Regulation 7A, and intimation to the Securities and Exchange Board of India on categorisation as Category I or Category II merchant banker have been extended from January 2, 2027 to March 31, 2027. Phase II compliance with net worth and liquid net worth requirements has been pushed from January 2, 2028 to March 31, 2028. All other provisions of the January 2, 2026 circular remain unchanged.
Securities & Exchange Board of India2026-06-11
Securities and Exchange Board of India extends merchant banker compliance deadlines for separate business units and capital requirements
The Securities and Exchange Board of India has pushed back multiple merchant banker compliance deadlines under its January 2, 2026 circular. Separate Business Unit implementation deadlines move to December 31, 2026, while Phase I and Phase II net worth and liquid net worth requirements shift to March 31, 2027 and March 31, 2028, respectively. The deadline to notify the regulator of Category I or Category II status also moves to March 31, 2027.