BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Professional competence
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All business performed
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Capital adequacy
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Detailed explanation-1: -To be a merchant banker, an applicant is required to pay a non-refundable application fee of Rs 50, 000 by way of demand draft drawn in favour of ‘Securities and Exchange Board of India’, payable at Mumbai. Such an applicant is required to have a minimum net worth of not less than Rs 5 crore.
Detailed explanation-2: -Merchant banker is a person who provides assistance for the subscription of securities. The merchant banker plays an important role and carries a lot of responsibilities like, private placement of securities, managing public issue of securities, stock broking, international financial advisory services, etc.
Detailed explanation-3: -50, 000/-by way of demand draft. Every merchant banker is required to pay Rs. 20 Lakhs as registration fee (as per SEBI regulation, 2014) at the time of grant of certificate of initial registration by SEBI. And this certificate of initial registration remains for five years.