{"id":3714,"date":"2021-07-12T19:48:27","date_gmt":"2021-07-12T19:48:27","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=3714"},"modified":"2021-07-12T19:57:51","modified_gmt":"2021-07-12T19:57:51","slug":"registration-of-merchant-banker-license-in-india","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/registration-of-merchant-banker-license-in-india\/","title":{"rendered":"Registration of Merchant Banker License in India"},"content":{"rendered":"<h2><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Registration-of-Merchant-Banker.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-3723\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Registration-of-Merchant-Banker.jpg\" alt=\"\" width=\"975\" height=\"468\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Registration-of-Merchant-Banker.jpg 654w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Registration-of-Merchant-Banker-300x144.jpg 300w\" sizes=\"(max-width: 975px) 100vw, 975px\" \/><\/a><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d3947eec7b2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d3947eec7b2\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/registration-of-merchant-banker-license-in-india\/#Registration_of_Merchant_Banker_License_in_India\" title=\"Registration of Merchant Banker License in India\">Registration of Merchant Banker License in India<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/registration-of-merchant-banker-license-in-india\/#Who_is_Merchant_Banker\" title=\"Who is Merchant Banker?\">Who is Merchant Banker?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/registration-of-merchant-banker-license-in-india\/#Services_can_be_offered_by_the_Merchant_Banker\" title=\"Services can be offered by the Merchant Banker:\">Services can be offered by the Merchant Banker:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/registration-of-merchant-banker-license-in-india\/#Categories_of_Merchant_Bankers\" title=\"Categories of Merchant Bankers:\">Categories of Merchant Bankers:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/registration-of-merchant-banker-license-in-india\/#Fees_Registration_of_Merchant_Banker\" title=\"Fees Registration of Merchant Banker:\">Fees Registration of Merchant Banker:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/registration-of-merchant-banker-license-in-india\/#Requirements_Registration_of_Merchant_Banker\" title=\"Requirements Registration of Merchant Banker:\">Requirements Registration of Merchant Banker:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/registration-of-merchant-banker-license-in-india\/#Merchant_Bankers_License_in_India-_Package_Inclusions\" title=\"Merchant Bankers License in India-\u00a0Package Inclusions\">Merchant Bankers License in India-\u00a0Package Inclusions<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Registration_of_Merchant_Banker_License_in_India\"><\/span><span style=\"color: #000080;\">Registration of Merchant Banker License in India<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Who_is_Merchant_Banker\"><\/span><span style=\"color: #ff9900;\">Who is Merchant Banker?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A merchant banker is defined as any person who is engaged in the business of issue management, either by making arrangements for buying, selling, or subscribing to securities or by acting as a consultant, manager, or rendering corporate advisory services in relation to such issue management, according to the SEBI (Merchant Bankers) Regulations, 1992.<\/p>\n<p>Merchant bankers provide advice to entrepreneurs from the first stages of a project through the start of production, and they are in charge of the issue process. Merchant bankers serve as middlemen between businesses and investors. They are in charge of prospectus preparation as well as marketing issues.<\/p>\n<figure id=\"attachment_3719\" aria-describedby=\"caption-attachment-3719\" style=\"width: 999px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Merchant-Banking-and-advisory-services.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3719\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Merchant-Banking-and-advisory-services.png\" alt=\"Merchant-Banking-and-advisory-services\" width=\"999\" height=\"585\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Merchant-Banking-and-advisory-services.png 420w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Merchant-Banking-and-advisory-services-300x175.png 300w\" sizes=\"(max-width: 999px) 100vw, 999px\" \/><\/a><figcaption id=\"caption-attachment-3719\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">Merchant-Banking-and-advisory-services<\/span><\/figcaption><\/figure>\n<p>Merchant banker is a company and is a combination of consultancy and banking services. Activities of merchant bankers in India are regulated by SEBI (merchant banker) rule 1992.<\/p>\n<p>Any person who is engaged in the business of issue management either by making arrangements regarding buying, selling or subscribing to securities or acting as manager, consultant or rendering corporate advisory services in relation to such issue management.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Services_can_be_offered_by_the_Merchant_Banker\"><\/span><span style=\"color: #000080;\"><strong><em><u>Services can be offered by the Merchant Banker:<\/u><\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_3717\" aria-describedby=\"caption-attachment-3717\" style=\"width: 891px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Services-Functions-of-Merchant-Banking.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3717\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Services-Functions-of-Merchant-Banking.png\" alt=\"Merchant-Banking Services-Functions\" width=\"891\" height=\"1181\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Services-Functions-of-Merchant-Banking.png 317w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Services-Functions-of-Merchant-Banking-226x300.png 226w\" sizes=\"(max-width: 891px) 100vw, 891px\" \/><\/a><figcaption id=\"caption-attachment-3717\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">Merchant-Banking Services-Functions<\/span><\/figcaption><\/figure>\n<ol>\n<li>Issue Management<\/li>\n<li>Credit Syndication<\/li>\n<li>Project Appraisal<\/li>\n<li>Handles Government consent for industrial projects<\/li>\n<li>Security Trustee Services<\/li>\n<li>Buy back assignment<\/li>\n<li>Share valuation<\/li>\n<li>Lead Managers to the IPO<\/li>\n<li>Issuing and paying Agent<\/li>\n<li>Capital Structuring<\/li>\n<li>Post Issue Management<\/li>\n<li>Underwriting<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"Categories_of_Merchant_Bankers\"><\/span><span style=\"color: #000080;\"><strong><em><u>Categories of Merchant Bankers:<\/u><\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong><em><u>Category I: <\/u><\/em><\/strong>To operate as adviser, consultant, manager, underwriter, portfolio manager to carry on the activity of issue management.<\/li>\n<li><strong><em><u>Category II<\/u>:\u00a0<\/em><\/strong>To operate as adviser, consultant, manager, underwriter, portfolio management.<\/li>\n<li><strong><em><u>Category III: <\/u><\/em><\/strong>To operate as underwriter, advisor or consultant to an issue.<\/li>\n<li><strong><em><u>Category IV: <\/u><\/em><\/strong>To operate only as advisor or consultant to an issue.<\/li>\n<\/ul>\n<p><strong><em><u>Requisites for applying for Merchant Banker License:<\/u><\/em><\/strong><\/p>\n<ol>\n<li>No person shall carry on the activity as a merchant banker unless he holds a certificate granted by SEBI.<\/li>\n<li>A merchant banker is required to have a minimum net worth i.e Capital Adequacy of not less than Rs. 5 Crore.<\/li>\n<li>There should be no relation to any other entity which is already registered as a Merchant Banker by the applicant.<\/li>\n<li>Two employees having prior experience in Merchant Banking Applicant is the requirement of minimum employees.<\/li>\n<li>An applicant required to send application form A along with additional information along with a non-refundable fee of Rs. 50,000\/- by way of demand draft.<\/li>\n<li>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 5 years. The merchant banker must apply to SEBI for a permanent certificate, 3 months before the expiry of the validity of the initial registration certificate, if he wishes to continue as a merchant banker.<\/li>\n<li>For permanent registration, the merchant banker is required to pay Rs. 9 Lakhs for the first block of 3 years towards permanent registration payable in term of schedule iii of SEBI regulation 1992.<\/li>\n<li>Merchant banker is required to take SEBI\u2019s prior approval for change in control.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"Fees_Registration_of_Merchant_Banker\"><\/span><span style=\"color: #000080;\"><strong><em><u>Fees Registration of Merchant Banker:<\/u><\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 268px;\" width=\"919\">\n<tbody>\n<tr>\n<td width=\"72\"><strong>S. No.<\/strong><\/td>\n<td width=\"378\"><strong>Particulars<\/strong><\/td>\n<td width=\"174\"><strong>Fees<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"72\">1.<\/td>\n<td width=\"378\">Application fee (Initial and permanent registration)<\/td>\n<td width=\"174\">50,000\/-<\/td>\n<\/tr>\n<tr>\n<td width=\"72\">2.<\/td>\n<td width=\"378\">Initial Registration<\/td>\n<td width=\"174\">20,00,000\/-<\/td>\n<\/tr>\n<tr>\n<td width=\"72\">3.<\/td>\n<td width=\"378\">Permanent Registration<\/td>\n<td width=\"174\">9,00,000\/-<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Requirements_Registration_of_Merchant_Banker\"><\/span><span style=\"color: #000080;\"><strong><em><u>Requirements Registration of Merchant Banker:<\/u><\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>MOA &amp; AOA of company (Memorandum and Article of Association of the applicant company)<\/li>\n<li>Provide the UIN (Unique Identification Number) obtained under MAPIN i.e Central Database of Market Participants (MAPIN) Regulations, 2003, for the applicant<\/li>\n<li>Details of Directors\/ Promoters alongwith their Qualification, experience in Merchant banking &amp; other related Financial Services<\/li>\n<li>Shareholding pattern of the Company<\/li>\n<li>Details of Key Managerial Personnel alongwith their Qualification, experience in Merchant banking &amp; other related Financial Services<\/li>\n<li>Details of infrastructure facilities<\/li>\n<li>Organisational Structure of the Company<\/li>\n<li>Financial Accounts of the applicant<\/li>\n<li>Report from principal bankers<\/li>\n<li>Details of associated registered intermediaries<\/li>\n<li>Undertakings<\/li>\n<li>Declaration by at least two directors<\/li>\n<li>Businesses handled by the applicant during last three years in relation to the following:<\/li>\n<\/ol>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Issue Management<\/li>\n<li>Investment Advisers<\/li>\n<li>Underwriting<\/li>\n<li>Portfolio Management<\/li>\n<li>Consultants\/advisors to the Issue<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Earlier there was capital adequacy Requirement varies according to categories, But now its 5 Crores.<\/strong><\/span><\/p>\n<p><span style=\"color: #000080;\"><strong>Time Limit 4-6 Months<\/strong><\/span><\/p>\n<h3 class=\"ptitle\"><span class=\"ez-toc-section\" id=\"Merchant_Bankers_License_in_India-_Package_Inclusions\"><\/span><span style=\"color: #000080;\">Merchant Bankers License in India-\u00a0Package Inclusions<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul class=\"service-cover-info-benefits\">\n<li class=\"service-cover-info-benefits__item\">Complete Merchant Banking Business Plan<\/li>\n<li class=\"service-cover-info-benefits__item\">Requirement of Filing of the application before SEBI<\/li>\n<li class=\"service-cover-info-benefits__item\">Day to day Advisory services<\/li>\n<li class=\"service-cover-info-benefits__item\">Demographics Research &amp; Targeting<\/li>\n<li class=\"service-cover-info-benefits__item\">Marketing Plan<\/li>\n<li>Target Cost as per Acquisition Optimization<\/li>\n<li>Assistance in post compliance<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Registration of Merchant Banker License in India Who is Merchant Banker? A merchant banker is defined as any person who is engaged in the business of issue management, either by making arrangements for buying, selling, or subscribing to securities or by acting as a consultant, manager, or rendering corporate advisory services in relation to such &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[116],"tags":[845],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/3714"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=3714"}],"version-history":[{"count":6,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/3714\/revisions"}],"predecessor-version":[{"id":3726,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/3714\/revisions\/3726"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=3714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=3714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=3714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}