Permitting non-scheduled Payments Banks to register as Bankers to an Issue

CIRCULAR
SEBI/HO/MIRSD/MIRSD_DOR/P/CIR/ 605 / 2021 August 3, 2021 To Recognized Stock Exchanges Registered Depositories Registered Stock Brokers Registered Merchant Bankers Registered Registrars to an Issue and Share Transfer Agents Registered Depository Participants National Payments Corporation of India Non-scheduled Payments Banks who propose to seek registration as Bankers to an Issue Madam / Sir, Sub: Permitting non-scheduled Payments Banks to register as Bankers to an Issue

1. SEBI vide notification dated July 30, 2021, amended the SEBI (Bankers to an
   Issue) Regulations, 1994 (BTI Regulations) thereby permitting such other banking company, as may be specified by the Board, from time to time, to carry out the activities of Bankers to an Issue (BTI), in addition to the scheduled banks.
2. In this regard, non-scheduled Payments Banks, which have prior approval from
   Reserve Bank of India, shall be eligible to act as a BTI subject to fulfilment of the conditions stipulated in the BTI Regulations.
3. Payments Banks registered as a BTI shall also be permitted to act as a Self￾Certified Syndicate Bank subject to the fulfilment of the criteria laid down by the
   Board in this regard from time to time. The blocking/movement of funds from the

investor to issuer shall only be made through the savings account of the investor held with the payments bank.
4. This circular is issued in exercise of powers conferred by Section 11(1) of the
Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
5. A copy of this circular is available on SEBI website at www.sebi.gov.in under the
categories “Legal Framework -> Circulars”.
Yours faithfully,
Aradhana Verma
Deputy General Manager
Marker Intermediaries Regulation and Supervision Department Tel. No. 022-2644 9633 Email ID: aradhanad@sebi.gov.in