Securities And Exchange Board Of India - Subsection
Section 21A(1) in Securities And Exchange Board Of India (Merchant Bankers) Regulations, 1992
(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.]
