The Securities Exchange Board of India (SEBI) on June 11, 2026, notified regarding the Extension of timelines for compliance with certain provisions of Circular dated January 02, 2026.
The following has been stated:
• SEBI has extended the implementation timelines for certain requirements under the SEBI (Merchant Bankers) (Amendment) Regulations, 2025, and the related circular dated January 02, 2026, following industry representations regarding operational challenges in establishing Separate Business Units (SBUs) and meeting revised capital requirements.
• Under the revised schedule, the deadline for transferring activities to Separate Business Units (SBUs) and complying with related SBU requirements has been extended from July 03, 2026, to December 31, 2026. The timelines for meeting the enhanced net worth and liquid net worth requirements have also been aligned with the financial year-end.
• Phase I compliance, earlier due on January 02, 2027, is now due by March 31, 2027, while Phase II compliance, earlier due on January 02, 2028, is now due by March 31, 2028.
• Similarly, the deadline for merchant bankers to intimate SEBI regarding their categorisation as Category I or Category II Merchant Banker has been extended to March 31, 2027.
• All other provisions of SEBI’s circular dated January 02, 2026, remain unchanged and continue to apply to merchant bankers.
[Notification no. - HO/49/14/15(2)2026-CFD-POD1/I/13567/2026]
