BANKING AFFAIRS

Detailed explanation-1: -Merchant bankers can act as an issue manager, advisor, consultant, underwriter and portfolio manager. They carry out the activity of the issue management, preparation of the prospectus, determining financial structure, a tie-up of financiers and final allotment.

Detailed explanation-2: -1. Category I Merchant Bankers: These merchant bankers can act as issue manager, advisor, consultant, underwriter and portfolio manager.

Detailed explanation-3: -Classification of Merchant Bankers Category-I can act as issue manager, advisor, consultant, underwriter and portfolio manager. Category-II can act as advisor, consultant, underwriter and portfolio manager. Category-III can act as underwriter, advisor and consultant only.

Detailed explanation-4: -Merchant banker is any person who is engaged in the business of issue management either by making arrangements regarding selling, buying or subscribing to securities as manager-consultant, advisor or rendering corporate advisory services in relation to such issue management in merchant banking.

Detailed explanation-5: -The four categories of merchant bankers issued by SEBI: 1. First category i. Who act as an advisor or consultant to an issue 2. Secondary category ii.