Bankers to Issue

An IPO has various participants such as, eligible investor classes, the underwriters, depository participants, stock exchanges, etc. The banks to the issue are also an integral part of an IPO.

As per Securities and Exchange Board of India (Bankers to an Issue) Regulations, 1994, The term ‘Bankers to the issue’ means a scheduled bank that is charged with carrying out all or any of the following activities.

a. Acceptance of application and application monies
b. Acceptance of allotment or call monies
c. Refund of application monies
d. Payment of refund and interest warrants

Other important information on Bankers to Issue

In order to qualify to be a Banker to issue in an IPO, the person or the entity has to obtain a due registration from SEBI in this regard.

SEBI grants the registration if the applicant meets the necessary criteria like having appropriate infrastructure, communication facilities, data processing facilities, and adequate manpower for discharging duties in an efficient manner.

The applicant or any of the directors of the applicant entity should not be involved in any litigation that is connected directly or indirectly to the securities market or be convicted of any economic offence.