[Under Securities and Exchange Board of India (Merchant Bankers) Regulation, 1992]
Statistically, around 215 entities are available in India doing business of merchant bankers as per data published by the Securities and Exchange Board of India [SEBI]. Maximum registered entities are in the form of Public Limited followed by Private Limited Company incorporated as per Companies Act, 2013. Few of the entity is in the form of Limited Liability Partnership registered under the Limited Liability Partnership Act, 2008.
Merchant Banker refers to an entity registered with SEBI with a specific purpose and guidelines of activities to pursue in the financial market per se securities market. It means any person who is engaged in the business of issue management either by making arrangements regarding selling, buying or subscribing to securities issued by a corporate who is in process of or already listed in the securities market or acting as manager, consulting, adviser or rendering corporate advisory service in relation to such issue either fresh or post fresh issue management.
Issue means an offer of sale or purchase of securities by any body corporate, or by any other person or group of the person on its or his or their behalf, as the case may be, to or from the public, or the holders of securities of such body corporate or person or group of persons through merchant banker.