Procedure for Registration of Bankers to an Issue With SEBI

Priya Gandhi

Priya Gandhi

Published on: Feb 10, 2026

Aakanksha Singhal

Updated on: Feb 10, 2026

★★★★★(2 Ratings)

199

The registration process for a BTI, is governed by the Securities and Exchange Board of India (Bankers to an Issue) Regulations, 1994.

Applicable Provisions:

1. Regulation 3, 4, 5, 6, 6A, 7, 8A, 9 of SEBI (Bankers to an Issue) Regulations, 1994
2. Para 1 of Master Circular for Bankers to an Issue registered with SEBI

Mandatory Requirements:

1. Applicant shall be:
   • Scheduled Bank (or equivalent as specified by SEBI)
   • Fit and Proper Person
   • Free from adverse litigation related to the securities market and economic offenses
   • Paid all registration fees according to the SEBI regulations
   • Strictly follow all SEBI regulations related to its activities as a Banker to an Issue
   • Abide by Code of Conduct as specified in Schedule III
2. Applicant has sufficient infrastructure and qualified staff to handle the BTI business.
3. Granting the certificate must be in the interest of investors (public interest).

Procedure:

1. Filing of Application:
   Applicant must make an online application, to SEBI, in Form A (Application for Grant of Certificate of Registration), through SEBI Intermediary Portal, along with:
   • Supporting documents mentioned in the Schedule I, and
   • Prescribed non-refundable fee, as specified in Part A (Amount to be Paid as Fees) of the Schedule II, which must be paid using the method specified in Part B of the same Schedule.

   Note:

   • Weblink for making application: (https://siportal.sebi.gov.in)
   • User Manual for Registration is available at https://siportal.sebi.gov.in/intermediary/index.html
   • Applicants must pay the required fees via direct bank credit through the online SEBI Payment Gateway.
2. Regulatory Authority to Seek Clarifications:
   • SEBI can demand any additional information or clarification it deems necessary.
   • If requested by SEBI, the applicant (or its designated principal officer) must appear before the Board for a personal interview/representation.
   • SEBI can reject the application if it finds grounds to do so. However, the applicant will be given a fair chance to be heard before the rejection is finalized.
   • The rejection decision must be communicated to the applicant within 30 days.
3. Grant of Registration Certificate:
   • Once SEBI is satisfied the applicant is eligible, it will issue the Certificate of Registration in Form B and notify the bank within one month.
   • The certificate is valid indefinitely unless it is later suspended or cancelled by SEBI.
4. Key Responsibilities of BTI:
   A Banker to an Issue shall:
   • Accept application money and subscription forms from investors during IPOs, rights issues, or debt issuances on behalf of the issuer company.
   • Maintain and manage Escrow Accounts, ensuring that funds collected from the public are kept in a separate, dedicated account and only released upon the successful completion of the allotment process.
   • Execute prompt refunds of application money to unsuccessful or partially successful applicants within the timelines mandated by SEBI.
   • Facilitate the transfer of funds to the issuer’s account once the basis of allotment is finalized and the listing permission is granted.
   • Keep comprehensive records of all transactions, including application dates, amounts received, refund particulars, and daily reporting of collections, for a minimum period of three years.
   • Ensure infrastructure readiness by maintaining necessary communication systems, data processing facilities, and a dedicated team to handle high-volume investor transactions.
   • Coordinate with other intermediaries, such as Registrars to the Issue and Lead Managers, to reconcile application data and ensure a smooth settlement process.
   • Provide electronic connectivity for processing payments through modern banking channels like ASBA, UPI, and NEFT/RTGS.

Abbreviations Used:

1. SEBI: Securities and Exchange Board of India
2. BTI: Banker to an Issue
3. ASBA: Application Supported by Blocked Amount
4. UPI: Unified Payments Interface
5. NEFT: National Electronic Funds Transfer
6. RTGS: Real-Time Gross Settlement
7. IPO: Initial Public Offerings