Section 27 in Securities and Exchange Board of India (Issue and Listing of Municipal Debt Securities) Regulations, 2015
27. [ Obligations of the issuer and merchant banker. [Substituted by Notification No. SEBI/LAD-NRO/GN/2019/40, dated 27.9.2019 (w.e.f. 15.7.2015).]
(1)The issuer shall disclose all the material facts in the offer documents issued or distributed to the public and shall ensure that all the disclosures made in the offer document are true, fair and adequate and there is no mis-leading or untrue statements or mis-statement in the offer document.(2)The merchant banker(s) shall verify and confirm that the disclosures made in the offer documents are true, fair and adequate and ensure that the issuer is in compliance with these regulations.(3)The merchant banker(s) shall ensure that all transaction specific disclosures required in Schedule I of these regulations are complied with:Provided that where the issuer is a body corporate to which the Companies Act, 2013 applies, the merchant banker(s) shall also ensure that the disclosures under Companies Act, 2013 and rules made thereunder are complied with.(4)The issuer shall treat the applicants in a public issue of municipal debt securities in a fair and equitable manner as per the procedures as may be specified by the Board.(5)The merchant bankers shall be responsible for the due diligence in respect of assignments undertaken by them in respect of issue, offer and distribution of securities to the public.(6)There shall be no conflict of interest between the lead manager(s) and the issuer or its group companies in accordance with the applicable regulations.][Chapter VIIA] [Inserted by Notification No. SEBI/LAD-NRO/GN/2019/40, dated 27.9.2019 (w.e.f. 15.7.2015).] Procedure In Case of Violation of Regulations
