Sebi: Entity registered as broker cannot act as merchant banker

Mumbai:  An entity registered only as a stock broker cannot undertake the role of a merchant banker in the capital markets, regulator Sebi said.  The Securities and Exchange Board of India (Sebi) has stated this position in reply to an ‘interpretive letter’ sought by Almondz Global Securities Limited (AGSL), who had asked whether it, as a stock broker, can handle any issue of debt securities offered on a private placement basis.  In case of AGSL, Sebi further said that although it was registered as a merchant banker too, it was barred by Sebi in March 2014 from taking up fresh assignments as a merchant banker for a period of five years.