SlideShare a Scribd company logo
APPA
Institute Of Engineering And
Technology
Dept : MBA
: Regulations Of Merchant banking
Presentation on:
Submitted By:
Mahesh.patil
Submitted To:
prof. Shashikant.k
Introduction :
“ A merchant bank is a financial institution providing
capital to companies in the form of share ownership
instead of loans. A merchant bank also provides
advisory on corporate matters to the firms which they
invest.
Regulations Of Merchant banking :
A merchant banker will require authorization by SEBI to
carry out the business.
SEBI has classified the merchant bankers into four
categories based on the nature and range of the
activities and responsibilities.
Category 1 :
It consists of merchant bankers who
carry on the business of issue management which
consists of preparation of issue management which
consists of preparations of prospectus, determining
the financial structure , tie-up of the financiers.
Minimum networth required is Rs. 1 crore.
Category : 2
It consists of those authorized to act in the capacity of
co-manager.
The Minimum networth required is Rs. 50 Lakhs
Category : 3
it
consists of those authorized to act as underwriter, advisor or consultant
to an issue.
The Minimum networth required is Rs. 20 Lakhs.
Category : 4
it consists of Merchant banker who act as
advisor or consultant to an issue.
There is no Minimum networth required.
SEBI GUIDELINES FOR MERCHANT
BANKERS
SEBI’s authorization is a must to act as merchant
bankers, includes:
 Professional qualification in finance, law or business management
 Infrastructure like office space, equipment and man power
 Capital adequacy
 Past track of record, experience, general reputation and fairness in all
transactions
 Every merchant banker should maintain copies of balance sheet, Profit
and loss account, statement of financial position
Cont….
 Half-yearly audited result should be submitted to
SEBI
 Merchant bankers are prohibited from buying
securities based on the unpublished price sensitive
information of their clients
 SEBI has been vested with the power to suspend or
cancel the authorization in case of violation of the
guidelines
 SEBI has the right to send inspecting authority to inspect
books of accounts, records etc… of merchant bankers
Conclusion :
merchant banking is difficult to define. The function
of merchant bankers varies from country to country. Merchant
banks are known as “Accepting and issuing houses” in UK and as
“investment banks” in USA
In India merchant bankers are allowed to undertake
only those activities which are related to securities market
including issue management activities and are prohibited
from carrying on fund based activities other than those
related exclusively to the capital market. This reduces the
scope of merchant banking in India.
Thank you

More Related Content

What's hot

Role and functions of sebi
Role and functions of sebiRole and functions of sebi
Role and functions of sebi
Ankur Yadav
 
Merchant Banking in India
 Merchant Banking in India  Merchant Banking in India
Merchant Banking in India
Abhijeet Deshmukh
 
Portfolio revision and evaluation
Portfolio revision and evaluationPortfolio revision and evaluation
Portfolio revision and evaluation
aarthi ramakrishnan
 
New issue market
New issue marketNew issue market
New issue market
Ankit Porwal
 
SEBI Presentation
SEBI PresentationSEBI Presentation
SEBI Presentation
Divya Kalra
 
Merchant banking guidelines
Merchant banking guidelinesMerchant banking guidelines
Merchant banking guidelines
Taher Ahmed
 
Clause 49
Clause 49Clause 49
money market and capital market
money market and capital marketmoney market and capital market
money market and capital market
Prateek Nepal
 
Financial services
Financial servicesFinancial services
Financial services
Visakhapatnam
 
corporate governance theories and practices
corporate governance theories and practices corporate governance theories and practices
corporate governance theories and practices
Dr.Rajesh Patel
 
Credit rating
Credit ratingCredit rating
Credit rating
Megha Aggarwal
 
Development of financial Institution
Development of financial InstitutionDevelopment of financial Institution
Development of financial Institution
nilesh sandhanshiv sandhanshiv
 
Financial institutions
Financial institutions Financial institutions
Financial institutions
Happy.vattathara Surendran
 
SEBI
SEBISEBI
Presentation On Mutual funds and its types
Presentation On Mutual funds and its typesPresentation On Mutual funds and its types
Presentation On Mutual funds and its types
Gurmeet Virk
 
Money market & its instruments
Money market & its instrumentsMoney market & its instruments
Money market & its instruments
abhishek rane
 
Primary market
Primary marketPrimary market
Primary market
Chhitiz Shrestha
 
LISTING OF SECURITIES
LISTING OF SECURITIESLISTING OF SECURITIES
LISTING OF SECURITIES
George V James
 
Indian Financial System
Indian Financial SystemIndian Financial System
Indian Financial System
Abhishek Chandan
 
Capital market instruments
Capital market instrumentsCapital market instruments
Capital market instruments
kartikganga
 

What's hot (20)

Role and functions of sebi
Role and functions of sebiRole and functions of sebi
Role and functions of sebi
 
Merchant Banking in India
 Merchant Banking in India  Merchant Banking in India
Merchant Banking in India
 
Portfolio revision and evaluation
Portfolio revision and evaluationPortfolio revision and evaluation
Portfolio revision and evaluation
 
New issue market
New issue marketNew issue market
New issue market
 
SEBI Presentation
SEBI PresentationSEBI Presentation
SEBI Presentation
 
Merchant banking guidelines
Merchant banking guidelinesMerchant banking guidelines
Merchant banking guidelines
 
Clause 49
Clause 49Clause 49
Clause 49
 
money market and capital market
money market and capital marketmoney market and capital market
money market and capital market
 
Financial services
Financial servicesFinancial services
Financial services
 
corporate governance theories and practices
corporate governance theories and practices corporate governance theories and practices
corporate governance theories and practices
 
Credit rating
Credit ratingCredit rating
Credit rating
 
Development of financial Institution
Development of financial InstitutionDevelopment of financial Institution
Development of financial Institution
 
Financial institutions
Financial institutions Financial institutions
Financial institutions
 
SEBI
SEBISEBI
SEBI
 
Presentation On Mutual funds and its types
Presentation On Mutual funds and its typesPresentation On Mutual funds and its types
Presentation On Mutual funds and its types
 
Money market & its instruments
Money market & its instrumentsMoney market & its instruments
Money market & its instruments
 
Primary market
Primary marketPrimary market
Primary market
 
LISTING OF SECURITIES
LISTING OF SECURITIESLISTING OF SECURITIES
LISTING OF SECURITIES
 
Indian Financial System
Indian Financial SystemIndian Financial System
Indian Financial System
 
Capital market instruments
Capital market instrumentsCapital market instruments
Capital market instruments
 

Similar to Regulation of Merchant banking

Merchant banking
Merchant bankingMerchant banking
Merchant banking
bhanu vashishtha
 
Merchant Banking [2020]
Merchant Banking [2020]Merchant Banking [2020]
Merchant Banking [2020]
RazakKuruvambalam
 
Merchant banking
Merchant bankingMerchant banking
Merchant banking
Vivek Prajapati
 
Merchant banking
Merchant bankingMerchant banking
Merchant banking
Ujjwal 'Shanu'
 
Merchant Banking
Merchant BankingMerchant Banking
Merchant Banking
priyaposy
 
Merchant banking
Merchant bankingMerchant banking
Merchant banking
pavanfalak
 
1447.ppt
1447.ppt1447.ppt
1447.ppt
RAJI585568
 
Merchant Banking in India give opportunity to invest
Merchant Banking in India give opportunity to investMerchant Banking in India give opportunity to invest
Merchant Banking in India give opportunity to invest
DrBabarAliKhan
 
1447.ppt
1447.ppt1447.ppt
1447.ppt
SachinKhare21
 
Ppt merchant bank
Ppt merchant bankPpt merchant bank
Ppt merchant bank
AHURMAZDA
 
Portfolio manager and merchant banker
Portfolio manager and merchant bankerPortfolio manager and merchant banker
Portfolio manager and merchant banker
Tushar Sachdeva
 
17159027 Merchant Banking Basics By Saylee
17159027 Merchant Banking Basics By Saylee17159027 Merchant Banking Basics By Saylee
17159027 Merchant Banking Basics By Saylee
gimmba
 
Presentation (VAIBA)
Presentation (VAIBA)Presentation (VAIBA)
Presentation (VAIBA)
Rafiqul Islam
 
Presentation (VAIBA)
Presentation (VAIBA)Presentation (VAIBA)
Presentation (VAIBA)
Rafiqul Islam
 
Merchant bankers
Merchant bankersMerchant bankers
Merchant banking
Merchant bankingMerchant banking
Merchant banking
Dr. Jamal uddeen
 
Merchant banking
Merchant bankingMerchant banking
Merchant banking
Dr. Jamal uddeen
 
Merchant banking
Merchant bankingMerchant banking
Merchant banking
BHARATH C
 
Accounts
AccountsAccounts
Accounts
GurjotKaur33
 
Merchant Banking
Merchant BankingMerchant Banking
Merchant Banking
Biswajit Palit
 

Similar to Regulation of Merchant banking (20)

Merchant banking
Merchant bankingMerchant banking
Merchant banking
 
Merchant Banking [2020]
Merchant Banking [2020]Merchant Banking [2020]
Merchant Banking [2020]
 
Merchant banking
Merchant bankingMerchant banking
Merchant banking
 
Merchant banking
Merchant bankingMerchant banking
Merchant banking
 
Merchant Banking
Merchant BankingMerchant Banking
Merchant Banking
 
Merchant banking
Merchant bankingMerchant banking
Merchant banking
 
1447.ppt
1447.ppt1447.ppt
1447.ppt
 
Merchant Banking in India give opportunity to invest
Merchant Banking in India give opportunity to investMerchant Banking in India give opportunity to invest
Merchant Banking in India give opportunity to invest
 
1447.ppt
1447.ppt1447.ppt
1447.ppt
 
Ppt merchant bank
Ppt merchant bankPpt merchant bank
Ppt merchant bank
 
Portfolio manager and merchant banker
Portfolio manager and merchant bankerPortfolio manager and merchant banker
Portfolio manager and merchant banker
 
17159027 Merchant Banking Basics By Saylee
17159027 Merchant Banking Basics By Saylee17159027 Merchant Banking Basics By Saylee
17159027 Merchant Banking Basics By Saylee
 
Presentation (VAIBA)
Presentation (VAIBA)Presentation (VAIBA)
Presentation (VAIBA)
 
Presentation (VAIBA)
Presentation (VAIBA)Presentation (VAIBA)
Presentation (VAIBA)
 
Merchant bankers
Merchant bankersMerchant bankers
Merchant bankers
 
Merchant banking
Merchant bankingMerchant banking
Merchant banking
 
Merchant banking
Merchant bankingMerchant banking
Merchant banking
 
Merchant banking
Merchant bankingMerchant banking
Merchant banking
 
Accounts
AccountsAccounts
Accounts
 
Merchant Banking
Merchant BankingMerchant Banking
Merchant Banking
 

More from mahesh patil

state bank of india home loan
state bank of india home loanstate bank of india home loan
state bank of india home loan
mahesh patil
 
Types of cost
Types of costTypes of cost
Types of cost
mahesh patil
 
MARKET BASED AND COMPETITOR BASEDB PRICING
MARKET BASED AND COMPETITOR BASEDB PRICINGMARKET BASED AND COMPETITOR BASEDB PRICING
MARKET BASED AND COMPETITOR BASEDB PRICING
mahesh patil
 
Presentation skills
Presentation skillsPresentation skills
Presentation skills
mahesh patil
 
Ksrtc profile and services
Ksrtc profile and services Ksrtc profile and services
Ksrtc profile and services
mahesh patil
 
Channel design
Channel designChannel design
Channel design
mahesh patil
 
Home banking final
Home banking finalHome banking final
Home banking final
mahesh patil
 

More from mahesh patil (7)

state bank of india home loan
state bank of india home loanstate bank of india home loan
state bank of india home loan
 
Types of cost
Types of costTypes of cost
Types of cost
 
MARKET BASED AND COMPETITOR BASEDB PRICING
MARKET BASED AND COMPETITOR BASEDB PRICINGMARKET BASED AND COMPETITOR BASEDB PRICING
MARKET BASED AND COMPETITOR BASEDB PRICING
 
Presentation skills
Presentation skillsPresentation skills
Presentation skills
 
Ksrtc profile and services
Ksrtc profile and services Ksrtc profile and services
Ksrtc profile and services
 
Channel design
Channel designChannel design
Channel design
 
Home banking final
Home banking finalHome banking final
Home banking final
 

Recently uploaded

一比一原版(UCL毕业证)伦敦大学|学院毕业证如何办理
一比一原版(UCL毕业证)伦敦大学|学院毕业证如何办理一比一原版(UCL毕业证)伦敦大学|学院毕业证如何办理
一比一原版(UCL毕业证)伦敦大学|学院毕业证如何办理
otogas
 
This assessment plan proposal is to outline a structured approach to evaluati...
This assessment plan proposal is to outline a structured approach to evaluati...This assessment plan proposal is to outline a structured approach to evaluati...
This assessment plan proposal is to outline a structured approach to evaluati...
lamluanvan.net Viết thuê luận văn
 
Applying the Global Internal Audit Standards_AIS.pdf
Applying the Global Internal Audit Standards_AIS.pdfApplying the Global Internal Audit Standards_AIS.pdf
Applying the Global Internal Audit Standards_AIS.pdf
alexiusbrian1
 
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...
Donc Test
 
Instant Issue Debit Cards
Instant Issue Debit CardsInstant Issue Debit Cards
Instant Issue Debit Cards
egoetzinger
 
一比一原版(GWU,GW毕业证)加利福尼亚大学|尔湾分校毕业证如何办理
一比一原版(GWU,GW毕业证)加利福尼亚大学|尔湾分校毕业证如何办理一比一原版(GWU,GW毕业证)加利福尼亚大学|尔湾分校毕业证如何办理
一比一原版(GWU,GW毕业证)加利福尼亚大学|尔湾分校毕业证如何办理
obyzuk
 
Financial Assets: Debit vs Equity Securities.pptx
Financial Assets: Debit vs Equity Securities.pptxFinancial Assets: Debit vs Equity Securities.pptx
Financial Assets: Debit vs Equity Securities.pptx
Writo-Finance
 
The Rise of Generative AI in Finance: Reshaping the Industry with Synthetic Data
The Rise of Generative AI in Finance: Reshaping the Industry with Synthetic DataThe Rise of Generative AI in Finance: Reshaping the Industry with Synthetic Data
The Rise of Generative AI in Finance: Reshaping the Industry with Synthetic Data
Champak Jhagmag
 
Instant Issue Debit Cards - School Designs
Instant Issue Debit Cards - School DesignsInstant Issue Debit Cards - School Designs
Instant Issue Debit Cards - School Designs
egoetzinger
 
SWAIAP Fraud Risk Mitigation Prof Oyedokun.pptx
SWAIAP Fraud Risk Mitigation   Prof Oyedokun.pptxSWAIAP Fraud Risk Mitigation   Prof Oyedokun.pptx
SWAIAP Fraud Risk Mitigation Prof Oyedokun.pptx
Godwin Emmanuel Oyedokun MBA MSc PhD FCA FCTI FCNA CFE FFAR
 
1. Elemental Economics - Introduction to mining.pdf
1. Elemental Economics - Introduction to mining.pdf1. Elemental Economics - Introduction to mining.pdf
1. Elemental Economics - Introduction to mining.pdf
Neal Brewster
 
一比一原版(UoB毕业证)伯明翰大学毕业证如何办理
一比一原版(UoB毕业证)伯明翰大学毕业证如何办理一比一原版(UoB毕业证)伯明翰大学毕业证如何办理
一比一原版(UoB毕业证)伯明翰大学毕业证如何办理
nexop1
 
can I really make money with pi network.
can I really make money with pi network.can I really make money with pi network.
can I really make money with pi network.
DOT TECH
 
What price will pi network be listed on exchanges
What price will pi network be listed on exchangesWhat price will pi network be listed on exchanges
What price will pi network be listed on exchanges
DOT TECH
 
一比一原版(IC毕业证)帝国理工大学毕业证如何办理
一比一原版(IC毕业证)帝国理工大学毕业证如何办理一比一原版(IC毕业证)帝国理工大学毕业证如何办理
一比一原版(IC毕业证)帝国理工大学毕业证如何办理
conose1
 
Instant Issue Debit Cards - High School Spirit
Instant Issue Debit Cards - High School SpiritInstant Issue Debit Cards - High School Spirit
Instant Issue Debit Cards - High School Spirit
egoetzinger
 
Pensions and housing - Pensions PlayPen - 4 June 2024 v3 (1).pdf
Pensions and housing - Pensions PlayPen - 4 June 2024 v3 (1).pdfPensions and housing - Pensions PlayPen - 4 June 2024 v3 (1).pdf
Pensions and housing - Pensions PlayPen - 4 June 2024 v3 (1).pdf
Henry Tapper
 
^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...
^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...
^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...
mayaclinic18
 
The WhatsPump Pseudonym Problem and the Hilarious Downfall of Artificial Enga...
The WhatsPump Pseudonym Problem and the Hilarious Downfall of Artificial Enga...The WhatsPump Pseudonym Problem and the Hilarious Downfall of Artificial Enga...
The WhatsPump Pseudonym Problem and the Hilarious Downfall of Artificial Enga...
muslimdavidovich670
 
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
sameer shah
 

Recently uploaded (20)

一比一原版(UCL毕业证)伦敦大学|学院毕业证如何办理
一比一原版(UCL毕业证)伦敦大学|学院毕业证如何办理一比一原版(UCL毕业证)伦敦大学|学院毕业证如何办理
一比一原版(UCL毕业证)伦敦大学|学院毕业证如何办理
 
This assessment plan proposal is to outline a structured approach to evaluati...
This assessment plan proposal is to outline a structured approach to evaluati...This assessment plan proposal is to outline a structured approach to evaluati...
This assessment plan proposal is to outline a structured approach to evaluati...
 
Applying the Global Internal Audit Standards_AIS.pdf
Applying the Global Internal Audit Standards_AIS.pdfApplying the Global Internal Audit Standards_AIS.pdf
Applying the Global Internal Audit Standards_AIS.pdf
 
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...
 
Instant Issue Debit Cards
Instant Issue Debit CardsInstant Issue Debit Cards
Instant Issue Debit Cards
 
一比一原版(GWU,GW毕业证)加利福尼亚大学|尔湾分校毕业证如何办理
一比一原版(GWU,GW毕业证)加利福尼亚大学|尔湾分校毕业证如何办理一比一原版(GWU,GW毕业证)加利福尼亚大学|尔湾分校毕业证如何办理
一比一原版(GWU,GW毕业证)加利福尼亚大学|尔湾分校毕业证如何办理
 
Financial Assets: Debit vs Equity Securities.pptx
Financial Assets: Debit vs Equity Securities.pptxFinancial Assets: Debit vs Equity Securities.pptx
Financial Assets: Debit vs Equity Securities.pptx
 
The Rise of Generative AI in Finance: Reshaping the Industry with Synthetic Data
The Rise of Generative AI in Finance: Reshaping the Industry with Synthetic DataThe Rise of Generative AI in Finance: Reshaping the Industry with Synthetic Data
The Rise of Generative AI in Finance: Reshaping the Industry with Synthetic Data
 
Instant Issue Debit Cards - School Designs
Instant Issue Debit Cards - School DesignsInstant Issue Debit Cards - School Designs
Instant Issue Debit Cards - School Designs
 
SWAIAP Fraud Risk Mitigation Prof Oyedokun.pptx
SWAIAP Fraud Risk Mitigation   Prof Oyedokun.pptxSWAIAP Fraud Risk Mitigation   Prof Oyedokun.pptx
SWAIAP Fraud Risk Mitigation Prof Oyedokun.pptx
 
1. Elemental Economics - Introduction to mining.pdf
1. Elemental Economics - Introduction to mining.pdf1. Elemental Economics - Introduction to mining.pdf
1. Elemental Economics - Introduction to mining.pdf
 
一比一原版(UoB毕业证)伯明翰大学毕业证如何办理
一比一原版(UoB毕业证)伯明翰大学毕业证如何办理一比一原版(UoB毕业证)伯明翰大学毕业证如何办理
一比一原版(UoB毕业证)伯明翰大学毕业证如何办理
 
can I really make money with pi network.
can I really make money with pi network.can I really make money with pi network.
can I really make money with pi network.
 
What price will pi network be listed on exchanges
What price will pi network be listed on exchangesWhat price will pi network be listed on exchanges
What price will pi network be listed on exchanges
 
一比一原版(IC毕业证)帝国理工大学毕业证如何办理
一比一原版(IC毕业证)帝国理工大学毕业证如何办理一比一原版(IC毕业证)帝国理工大学毕业证如何办理
一比一原版(IC毕业证)帝国理工大学毕业证如何办理
 
Instant Issue Debit Cards - High School Spirit
Instant Issue Debit Cards - High School SpiritInstant Issue Debit Cards - High School Spirit
Instant Issue Debit Cards - High School Spirit
 
Pensions and housing - Pensions PlayPen - 4 June 2024 v3 (1).pdf
Pensions and housing - Pensions PlayPen - 4 June 2024 v3 (1).pdfPensions and housing - Pensions PlayPen - 4 June 2024 v3 (1).pdf
Pensions and housing - Pensions PlayPen - 4 June 2024 v3 (1).pdf
 
^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...
^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...
^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...
 
The WhatsPump Pseudonym Problem and the Hilarious Downfall of Artificial Enga...
The WhatsPump Pseudonym Problem and the Hilarious Downfall of Artificial Enga...The WhatsPump Pseudonym Problem and the Hilarious Downfall of Artificial Enga...
The WhatsPump Pseudonym Problem and the Hilarious Downfall of Artificial Enga...
 
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
 

Regulation of Merchant banking

  • 1. APPA Institute Of Engineering And Technology Dept : MBA : Regulations Of Merchant banking Presentation on: Submitted By: Mahesh.patil Submitted To: prof. Shashikant.k
  • 2. Introduction : “ A merchant bank is a financial institution providing capital to companies in the form of share ownership instead of loans. A merchant bank also provides advisory on corporate matters to the firms which they invest.
  • 3. Regulations Of Merchant banking : A merchant banker will require authorization by SEBI to carry out the business. SEBI has classified the merchant bankers into four categories based on the nature and range of the activities and responsibilities.
  • 4. Category 1 : It consists of merchant bankers who carry on the business of issue management which consists of preparation of issue management which consists of preparations of prospectus, determining the financial structure , tie-up of the financiers. Minimum networth required is Rs. 1 crore.
  • 5. Category : 2 It consists of those authorized to act in the capacity of co-manager. The Minimum networth required is Rs. 50 Lakhs Category : 3 it consists of those authorized to act as underwriter, advisor or consultant to an issue. The Minimum networth required is Rs. 20 Lakhs.
  • 6. Category : 4 it consists of Merchant banker who act as advisor or consultant to an issue. There is no Minimum networth required.
  • 7. SEBI GUIDELINES FOR MERCHANT BANKERS SEBI’s authorization is a must to act as merchant bankers, includes:  Professional qualification in finance, law or business management  Infrastructure like office space, equipment and man power  Capital adequacy  Past track of record, experience, general reputation and fairness in all transactions  Every merchant banker should maintain copies of balance sheet, Profit and loss account, statement of financial position
  • 8. Cont….  Half-yearly audited result should be submitted to SEBI  Merchant bankers are prohibited from buying securities based on the unpublished price sensitive information of their clients  SEBI has been vested with the power to suspend or cancel the authorization in case of violation of the guidelines  SEBI has the right to send inspecting authority to inspect books of accounts, records etc… of merchant bankers
  • 9. Conclusion : merchant banking is difficult to define. The function of merchant bankers varies from country to country. Merchant banks are known as “Accepting and issuing houses” in UK and as “investment banks” in USA In India merchant bankers are allowed to undertake only those activities which are related to securities market including issue management activities and are prohibited from carrying on fund based activities other than those related exclusively to the capital market. This reduces the scope of merchant banking in India.