Sebi’s proposed merchant banking regulations: Will it make the big bigger?

The Securities and Exchange Board of India (SEBI) has proposed new regulations for merchant banking, which could potentially consolidate the market and favor larger entities. These proposed changes are intended to enhance transparency and standardize practices within the merchant banking sector. However, there is concern that the new regulations might inadvertently strengthen the position of already dominant players by increasing regulatory compliance costs for smaller firms. The impact of these regulations will likely shape the competitive landscape of merchant banking in India, influencing market dynamics and potentially leading to greater concentration among top players in the sector.