MANAGEMENT

Detailed explanation-1: -Merchant banks mainly work with small-scale enterprises that are unable to raise funds through an initial public offering (IPO) by providing mezzanine financing, bridge financing, equity financing, and corporate credit products.

Detailed explanation-2: -Capital market is a place where buyers and sellers indulge in trade (buying/selling) of financial securities like bonds, stocks, etc. The trading is undertaken by participants such as individuals and institutions. Capital market trades mostly in long-term securities.

Detailed explanation-3: -Category IV Merchant Bankers: A category IV merchant banker can merely act as consultant or advisor to an issue of capital. Capital Adequacy Norms: SEBI has prescribed capital adequacy norms for registration of the various categories of merchant bankers.

Detailed explanation-4: -The primary objectives of merchant banking include providing funds to companies, underwriting, managing their portfolios, offering corporate advisory, and managing corporate issues.