• The new framework was introduced by amending the SEBI (Merchant Bankers) Regulations, 1992.
• Following the amendment, the regulations are now called the SEBI (Merchant Bankers) (Amendment) Regulations, 2025.

Key Norms:
Net Worth and Liquid Worth requirement: The Category-I merchant bankers are required to maintain a minimum net worth of Rs 25 crore by January 02, 2027 and double of this amount (Rs 50 crore) by January 02, 2028. 

• In addition to that, they are also required to maintain Liquid Net Worth (LNW) of Rs 6.25 crore (by January 02, 2027) and Rs 12.5 crore (by January 02, 2028).
• Similarly, the Category-II merchant bankers are also required to maintain Rs 7.5 crore and Rs 10 crore in net worth across two phases,

Underwriting Limits: SEBI has mandated that total underwriting obligations should not exceed 20 times  a merchant banker’s liquid net worth, while, it has given two years transition period to the existing bankers to comply with this new rule.
Minimum Revenue Requirement: SEBI has mandated all MBs to generate minimum revenue requirement from permitted activities, for instance: Rs 25 crore for Category-I and Rs 5 crore for Category-II, over a period of 3 years, failing of which could result in the cancellation of registration.