Section 21A in Securities And Exchange Board Of India (Merchant Bankers) Regulations, 1992
21A. [ Merchant banker not to act as such for an associate. [Inserted by SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 w.e.f. 26.08.2009.]
(1)A merchant banker shall not lead manage any issue or be associated with any activity undertaken under any regulations made by the Board, if he is a promoter or a director or an associate of the issuer of securities or of any person making an offer to sell or purchase securities in terms of any regulations made by the Board:Provided that a merchant banker who is an associate of such issuer or person may be appointed, if he is involved only in the marketing of the issue or offer.Explanation. - For the purposes of this regulation; a merchant banker shall be deemed to be an "associate of the issuer or person" if:(i)either of them controls, directly or indirectly through its subsidiary or holding company, not less than fifteen per cent. of the voting rights in the other; or(ii)either of them, directly or indirectly, by itself or in combination with other persons, exercises control over the other; or(iii)there is a common director, excluding nominee director, amongst the issuer, its subsidiary or holding company and the merchant banker.]
