The Association of Merchant Bankers of India (AMBI) is proposing to have an exhaustive dialogue with the Securities and Exchange Board of India (Sebi) on its functioning as a self-regulatory organisation (SRO).

This follows a feeling among AMBI members that it is being sidestepped when decisions relating to merchant bankers are being taken. AMBI was given SRO status in 1995, but it has not really been officiating as one. Recently, the association was really piqued when Sebi asked one of its members to stop taking up further assignements without so much as giving it any notice. AMBI feels that the member should have been given a fair hearing and also feels that AMBI as the SRO should have been informed about the decision. A committe has subsequently been set up by AMBI to go into the matter.

Then there was the issue of asking all merchant bankers to furnish details of employees to Sebi. This was also demanded without consulting/informing AMBI. The association has already made its disappointment clear to Sebi and the proposed dialogue is reportedly being underataken to clear all misunderstandings. AMBI will dicuss the matter at a board meeting scheduled for May 15. The dialogue with Sebi is expected to take up issues of letting AMBI register merchant bankers, take punitive action against the members and enforce a code of conduct. AMBI has already received a draft code of conduct that was prepared for it by CC Choksey & Co. However this is being finetuned so as to get adjusted to the liking of the community. Ambi wishes to discuss with Sebi matters relating to the setting up of a time-table on the course of action to be followed in the process of functioing as a SRO. "We have already lost two years and if action is not taken now, time will really be lost", said a AMBI source.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.