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Chartered Capital & Investment Ltd will cease its merchant banking operations. The company's board has approved surrendering its Merchant Banking Registration Certificate to the Securities and Exchange Board of India (SEBI), with the process set to occur as of April 03, 2026. Additionally, Nevil Sheth has been appointed as the new Compliance Officer, effective April 03, 2026, succeeding Sagar Bhatt.
This move signals a strategic decision by Chartered Capital & Investment Ltd to streamline its operations and reallocate resources. Exiting the non-operational segment aims for greater efficiency and a clearer business focus. The appointment of a new Compliance Officer also reflects a change in the company's governance structure, ensuring continued adherence to regulatory standards.
Chartered Capital & Investment Ltd has operated as a registered Category I Merchant Banker with SEBI since April 1, 1994, offering services such as issue management, takeover assignments, and corporate advisory.
The company has faced regulatory scrutiny in the past. In 2015, SEBI initiated proceedings related to alleged lack of due diligence during the IPO of RDB Rasayans Limited. More recently, in July 2022, CCIL settled a case with SEBI for Rs 10.87 lakh concerning alleged violations of merchant banker norms during the buyback of shares of Mazda Ltd.
Key changes include:
- The company will cease all merchant banking operations.
- The SEBI Merchant Banking Registration Certificate will be surrendered.
- Nevil Sheth assumes the role of Compliance Officer.
- Resources may be reallocated to more active or profitable business segments.
The decision highlights challenges in the merchant banking segment's viability, as noted by its non-operational status and market conditions. The license surrender process will also involve regulatory compliance and procedural steps.
Other entities registered with SEBI as Category I Merchant Bankers include Axis Capital, Ashika Capital, and Bank of Maharashtra's merchant banking division.
Next steps involve:
- Formal application to SEBI for license surrender.
- Timeline for license surrender completion.
- Future announcements regarding Chartered Capital & Investment Ltd's business focus post-exit.
- Transition of compliance procedures under Nevil Sheth.