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BANKER TO AN ISSUE

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Banker to an Issue means a scheduled bank which carries out the activities like:

▪Acceptance of application and application monies;

▪Acceptance of allotment or call monies;

▪Refund of application monies; 

▪Payment of dividend or interest warrant during & after issue of securities. 

It also opens Escrow account for collection and utilization of public issue proceeds. The banks are expected to furnish prompt information and records to the issuer company and to the lead manager for monitoring and progressing the issue work. For this purpose, the company has to enter into an agreement with different banks specifying the conditions, terms  and remuneration for services to be rendered by each such bank. 

APPLICATION FOR REGISTRATION:

(i) The Applicant has the necessary infrastructure, communication and data processing facilities and manpower to effectively discharge his activities;

(ii) The Applicant or any of its directors is not involved in any litigation connected with the securities market and which has an adverse bearing on the business of the applicant or has not been convicted of any economic offence; 

GENERAL OBLIGATIONS AND RESPONSIBILITIES:

(i) The number of applications received, the names of investors, dates on which the applications were received and the amount so received from the investors. 

(ii) The time within which the applications received from the investors were forwarded to the body corporate or registrar to an Issue as the case may be; 

(iii) The Dates and Amount of the refund monies paid to the investors; 

(iv) Dates, names and amount of dividend/ interest warrant paid to the investors. 

The Banker to an issue shall intimate SEBI about the place where these documents are kept and shall preserve them for a minimum period of 3 years. 

AGREEMENT WITH THE BODY CORPORATE: Banker to an issue should enter into an agreement with the body corporate for whom he is the banker to an issue with regard to following matters: 

(i) the number of centre at which the application and the application monies of an issue of a body corporate will be collected from the investors; 

(ii) The time within which the statements regarding the application and application monies received from the investors investing in an issue of a body corporate will be forwarded to the Registrar to an issue of body corporate, as the case may be. 

(iii) The daily statement will be sent by designated controlling branch of bankers to the issue to the registrar to an issue indicating the number of body corporate and the amount of application money received. 

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