Mumbai, Jan. 2 -- The Securities and Exchange Board of India (Sebi) has introduced a phased rollout of stricter merchant banker regulations.

The markets regulator, which divided merchant bankers into two net-worth-based categories, has mandated a gradual increase in capital adequacy and liquid net worth.

Existing merchant bankers will now have two years to fully comply, according to a Sebi circular, published on Friday.

There are 224 merchant bankers registered with Sebi, including prominent ones like 360 ONE WAM Ltd, AK Capital Services Ltd, JM Financial Ltd and Kotak Mahindra Capital Company Ltd.

According to new Sebi rules, category I merchant bankers must maintain a net worth of Rs.25 crore and liquid net worth of Rs.6.25 crore by...