Merchant bankers are barred from leading public issues if key personnel or relatives exceed small ownership thresholds, subject to limited exclusions. A merchant banker shall not lead manage any public issue if its directors, key managerial personnel, compliance officer, specified employees, or their relatives, individually or in aggregate, hold more than 0.1% of paid-up share capital or shares with nominal value exceeding Rs. 10,00,000, whichever is lower; holdings via mutual funds and ESOPs are excluded, and appointment for marketing-only activity is permitted with specified disclosures.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Merchant bankers are barred from leading public issues if key personnel or relatives exceed small ownership thresholds, subject to limited exclusions.
A merchant banker shall not lead manage any public issue if its directors, key managerial personnel, compliance officer, specified employees, or their relatives, individually or in aggregate, hold more than 0.1% of paid-up share capital or shares with nominal value exceeding Rs. 10,00,000, whichever is lower; holdings via mutual funds and ESOPs are excluded, and appointment for marketing-only activity is permitted with specified disclosures.
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