MERCHANT BANKING SERVICES
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is merchant banking as defined by SEBI in India?
Merchant banking refers to the activity of managing issues of securities and providing advisory services related to corporate finance, as regulated by SEBI under the SEBI (Merchant Bankers) Regulations, 1992.
What is a Shelf Prospectus and how long is it valid under SEBI regulations?
Prospectus for multiple issues valid for one year.
Which regulatory body governs merchant bankers in India?
SEBI (Securities and Exchange Board of India) governs and regulates merchant bankers in India under the SEBI (Merchant Bankers) Regulations, 1992.
What is the minimum application size for a High Net Worth Individual (HNI) in an IPO?
Above Rs 2 lakh per application in an IPO.
What is the minimum net worth requirement for a Category I merchant banker in India?
A Category I merchant banker must maintain a minimum net worth of Rs. 5 crore as prescribed by SEBI regulations.
What is the concept of 'Anchor Investor' in a book building IPO?
QIB allotted shares before IPO opening at fixed price.
How many categories of merchant bankers exist under SEBI regulations?
Under the SEBI (Merchant Bankers) Regulations, 1992, there is effectively one category of merchant banker, as the earlier four-category system was abolished; currently all registered merchant bankers fall under a single category.
What percentage of shares is reserved for Retail Individual Investors (RIIs) in a book building issue?
Minimum 35% of net offer to public reserved for RIIs.
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