Further, the Phase I compliance deadline for enhanced net worth requirements has been extended to March 31, 2027, from January 2, 2027. The Phase II deadline has been shifted to March 31, 2028, from January 2, 2028.
Similarly, compliance timelines for Phase I and Phase II liquid net worth requirements have been extended to March 31, 2027, and March 31, 2028, respectively.The deadline for merchant bankers to intimate Sebi regarding their categorisation as Category I or Category II merchant bankers has also been extended to March 31, 2027, from January 2, 2027.
The regulator said the decision was taken after receiving representations from market participants highlighting difficulties in establishing the necessary systems and processes for implementing the SBU framework and seeking alignment of compliance deadlines with the end of the financial year.
The provisions stem from the Sebi (Merchant Bankers) Regulations, 2025, notified on December 5, 2025, which revised the net worth and liquid net worth requirements applicable to merchant bankers and introduced a framework for segregation of activities through SBUs.
Commenting on the development, Siddhartha Desai, Partner at JSA Advocates and Solicitors, said that the extensions are welcome for investment bankers, as the original turnaround time, including key milestones under the SBU framework, was highly unlikely given the on-ground steps required to achieve them.
(Edited by : Srabastee Biswas)
