Compliance officer independence requires merchant bankers to appoint qualified personnel, monitor regulatory adherence, report breaches, and address investor grievances.

Merchant bankers must maintain a compliance officer who meets prescribed professional qualifications, relevant post-qualification compliance experience, and Board-specified certification requirements. The officer must function independently from the principal officer and specified employees, monitor compliance with applicable regulatory requirements, and redress investor grievances. Observed non-compliance must be independently and immediately reported, and deficiencies identified in a draft prospectus or letter of offer must not recur. A vacancy must be filled within three months, with interim appointments permitted only where regular eligibility and obligations are met.

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