The merchant banker may be in the form of a bank or a firm who are licensed by SEBI to undertake non-financial services (rather than providing funds) such as the issue of stocks, funds rising and management, advisory services, counsel on merger and acquisition. A merchant banker underwrites corporate securities and provides guidelines to clients on issues like corporate mergers. These banks need separate registration from SEBI for performing as portfolio manager. Merchant bankers are called in different names across the world. In USA they are called Investment bankers and in UK they are called ‘accepting and issuing houses’.
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