The Securities Exchange Board of India (Sebi) is implementing new merchant banker regulations in phases starting January 2, 2025. These rules categorize bankers based on capital adequacy and net worth, with increasing requirements over two phases ending in 2028. Stricter underwriting caps and prohibitions on outsourcing core activities are also introduced. Merchant bankers must comply with these changes, including unwinding outsourcing arrangements by April 2026 and adhering to new conflict-of-interest guidelines regarding issuer stakes.