The term Merchant Banking has its origin in the trading methods of countries in the late eighteenth and early nineteenth century when trade-taking place was financed by bill of exchange drawn by merchanting houses

SEBI prescribed certain post-issue reports which are required to be submitted by the lead managers. Two post-issue reports each for public issue are to be sent by lead managers to SEBI i.e., (a) 3-day post-issue monitoring report and (b) 78-day post issue monitoring report.

With a view to ensuring that all Rules, Regulations, Guidelines, Notifications, etc. issued by SEBI, the Government of India, and other regulatory organisations are complied with, the merchant bankers shall designate a senior officer as Compliance Officer, who shall co-ordinate with regulatory authorities in various matters and provide necessary guidance and also ensure compliance internally. The Compliance Officer shall also ensure that observations made/deficiencies pointed out by SEBI do not recur.

Necessary Code of Conduct for the officers and employees of the merchant bankers should be framed to prevent insider trading, in the light of SEBI Insider Trading Regulations, 1992. Lead manager should bring to the specific notice of ROCs instances of non-compliance with the Companies Act requirements with regard to appointment of whole-time qualified company secretaries. In view of this, lead managers may like to ensure necessary compliance in this regard before filling of documents with ROC.