3. MERCHANT BANKER
• According to SEBI, “a merchant banker is one
who is engaged in the business of issue
management either by making arrangements
regarding selling, buying or subscribing to the
securities as manager, advisor or rendering
corporate advisory services in relation to such
issue management”
• key intermediary in the financial market
• facilitates the issuers of securities-to raise
capital
4. FUNCTIONS OF MERCHANT BANKING
• Raising Finance for Clients
• Broker in Stock Exchange
• Project Management
• Advice on Expansion and Modernization
• Managing Public Issue of Companies
• Handling Government Consent for Industrial Projects
• Special Assistance to Small Companies and Entrepreneurs
• Services to Public Sector Units
• Revival of Sick Industrial Units
• Portfolio Management
• Corporate Restructuring
• Leasing Services
• Management of Interest and Dividend
5. REG. UNDER - Category 1 Merchant Banker registered with Securities Exchange Board of
India (SEBI) undertaking assignments
CATEGORY I – To carry on the activity of issue management and to act as
adviser, consultant, manager, underwriter, portfolio manager.
FUNCTIONS - adviser, consultant, manager, underwriter, portfolio manager, Lead Manager,
Co-Manager, Advisor, Arranger etc. for public issues, rights issues and
private placement.
CAPITAL - Rs.5 crores
ADEQUACY
FEE – 2.5 L for first 2 cases and 1.5 L for third case