Sebi allows payments banks to act as investment bankers

Sebi has allowed payments banks to carry out the activities of investment bankers to provide easy access to investors to participate in public and rights issues by using various payment avenues, markets regulator. Non-scheduled payments banks, which have prior approval from the Reserve Bank of India (RBI), will be eligible to act as a banker to an issue (BTI).

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This is subject to fulfilment of the conditions stipulated in the BTI rules. Further, payments banks registered as a BTI will also be permitted to act as self-certified syndicate banks, subject to the fulfilment of the criteria laid down by the Sebi in this regard from time to time.”The blocking/movement of funds from the investor to the issuer shall only be made through the savings account of the investor held with the payments bank.

Bankers to an issue mean a scheduled bank or such other banking company as may be specified by Sebi carrying activities, including acceptance of application money, acceptance of allotment or call money, refund of application money and payment of dividend or interest warrants.

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