Under the SEBI (Merchant Bankers) Regulations, 1992, which activity is central to the definition of a merchant banker?
Question and options
Under the SEBI (Merchant Bankers) Regulations, 1992, which activity is central to the definition of a merchant banker?
Managing a public issue of securities or advising on it
Opening demat accounts as a depository participant
Holding clients’ securities in safekeeping as a custodian
Keeping the register of members as a share transfer agent
Answer and explanation
Correct answer: A - Managing a public issue of securities or advising on it
The Merchant Bankers Regulations define a merchant banker as a person engaged in the business of issue management, by arranging the sale, purchase or subscription of securities or by acting as manager, consultant or adviser to an issue. Custodians, depository participants and registrars and share transfer agents are separate intermediaries with their own SEBI regulations.
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