REGULATOR WANTS DUE DILIGENCE NORMS FOR MERCHANT BANKERS

Market Regulator Securities and Exchange Board of India (SEBI) wants to put in place standard guidelines for the due diligence process carried out by merchant bankers for public issues.

Standard due diligence norms

• Guidelines to involve verification of issuer eligibility, corporate records, the issuer's objectives , among other things,
• Specific instructions on how to conduct due diligence of company management, promoters and group companies.
• Move aimed at protecting investors' interest and enhancing the quality of companies to the market.