BANKING AFFAIRS

Detailed explanation-1: -This obligation is provided under Regulation 22 of the Merchant Banking Regulation which provides that the lead merchant banker shall accept a minimum underwriting obligation of 5% of total commitment or INR 25 Lacs, whichever is less.

Detailed explanation-2: -Category III Such merchant bankers can act as an underwriter, advisor and consultant. They can neither undertake issue management of their own nor do they act as co-manager. They cannot undertake the activities of portfolio management.

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

Detailed explanation-4: -1. Category I Merchant Bankers: These merchant bankers can act as issue manager, advisor, consultant, underwriter and portfolio manager.

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.