Section 13 in Securities And Exchange Board Of India (Merchant Bankers) Regulations, 1992
13. Code of Conduct.-
Every merchant banker shall abide by the Code of Conduct as specified in Schedule III.[13-A. - "Merchant banker not to associate with any business other than that of the securities market-No merchant banker, other than a bank or a financial institution, who has been granted a certificate of registration under these regulations shall [after June 30th, 1998] [Inserted by S.O. 837(7), dated 9.12.1997] carry on any business other than that in the securities market.Notwithstanding anything contained above, a merchant banker who prior to the date of notification of the securities and exchange board of India (Merchant Bankers) Amendment Regulations, 1997, has entered into a contract in respect of a business other than that of the securities market, may, if he so desires, discharge his obligations under such contract.Provided that a merchant banker who has been granted certificate of registration to act as primary or satelite dealer by Reserve Bank of India, may carry on such business as may be permitted by the Reserve Bank of India."Explanation - for the purposes of this regulation:(i)A "bank" shall mean a banking company as defined under section 5 of the Banking Regulation Act, 1949 (10 of 1949) and the corresponding new bank set up under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 (5 of 1970) and Banking Companies (Acquisition and Transfer of Undertaking) Act, 1980 (40 of 1980), State Bank of India Act, 1955 (23 of 1955) and State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959)(ii)A "public financial institution" shall have the same meaning as assigned to the term under Section 4A of the Companies Act, 1956 (1 of 1956) and shall include Industrial Development Corporations and Financial Corporations established by the Central Government or State Governments as the case may be.]
