Registration of Merchant Banker and Exam Certification
The term ‘Merchant Bank’ is mostly used in the context of business banking. Today we are going to focus on Merchant banking registration and how it can be applied to business needs.
A merchant banker is an individual or firm that coordinates or acts as a principal for any party in connection with a securities transaction. Merchant bankers are also involved in mergers & acquisitions, capital formation, financial restructuring, due diligence, IPO’s, and even bankruptcy situations.
What is the procedure of obtaining registration as a Merchant Banker from SEBI?
An applicant for registration as a Merchant Banker in India must pay a non-refundable application fee of Rs.50,000/- in the form of a demand draft payable to the ‘Securities and Exchange Board of India and payable in Mumbai.
What are the fees to be paid by the Merchant Banker?
A Merchant Banker is required to pay fees as mentioned in the following
- Application fee (Initial and permanent registration) Rs. 50,000/-
- Initial Registration Rs. 20,00,000/-
- Permanent Registration Rs. 9,00,000/
Is it possible for a CA to engage as a merchant banker?
Under SEBI laws and regulations, a CA gets registration as a category IV merchant banker and acts as an advisor to a PRIVATE COMPANY’S capital offer.
What services does a Merchant Banker provide?
- Project Consultation
- Management of Debt and Equity Offerings
- Management of Problems
- Portfolio management
- Restructuring Strategies
- Financing from afar
- Syndication of Loans
- Strategies for investment.
- Advisory and corporate counseling service
Merchant Banking Certification Examination
To be eligible to become a merchant banker, one should have studied some financial field as his or her undergraduate courses. In addition, he or she must have passed the examinations of the NISM-Series-IX: Merchant Banking Certification Examination.
