The Securities and Exchange Board of India (SEBI), which is a regulatory body, has classified ‘Merchant Bankers’ under the following four categories –
This category contains the Merchant Bankers who can act as Issue Managers, Consultants, Advisors, Portfolio Managers and Underwriters.
Category II Merchant Bankers:
These Merchant Bankers can act as Advisors, Consultants, Portfolio Managers and Underwriters. But they cannot act as issue managers on their own but as Co-Managers.
Category III Merchant Bankers:
This category of Bankers is allowed to act as Advisors, Consultants and Underwriters only. They can neither act as Issue Managers on their own nor as Co-Managers. Also, they cannot undertake portfolio management activities.
Category IV Merchant Bankers:
This category of Merchant Bankers can only act as Advisors or Consultants regarding an issue of capital.
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