SEBI asks bankers to disclose due diligence records

Our Bureau Mumbai | Updated on November 15, 2017 Published on January 10, 2012

Stock market regulator SEBI has asked merchant bankers to disclose their track record of due diligence done during the last three financial years from the date of listing for each public issue managed by them.

The directive comes into effect immediately; the three year track record may be submitted latest by March 31, said SEBI.

Provides format

SEBI has also provided a detailed format for disclosing the track record of merchant bankers both in the case of debt and equity issuances.

SEBI said that merchant bankers were required to disclose their track record on their Web sites.

In case more than one merchant banker is associated with an issue, those bankers who signed the due diligence certificate of the company shall disclose their track records, said SEBI.

This would enable investors to evaluate the post IPO performance of companies and also ensure that merchant bankers exercise proper due diligence on the veracity and adequacy of disclosures by companies in public offers, said SEBI.


Published on January 10, 2012
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