Sebi Guidelines for Merchant Banking

The Securities and Exchange Board of India (SEBI) Guidelines for merchant banking are being updated. This article talks about the new guidelines that will come into effect, what they are trying to achieve with these amendments, what they’ll mean for financial institutions, and how you can stay compliant by ensuring that your processes are aligned with the new laws.

What is Merchant Banking

 Merchant banking is a term used to define a variety of finance-related activities. It can be defined as lending, arranging corporate finance, and taking equity stakes in companies. As the name suggests, merchant banking combines elements from the worlds of commerce and investment banking. The three main divisions of merchant banking are financing, investment management, and advisory services. 

Sebi Guidelines for Merchant Banking

The Government of India governs the securities market in order to maintain market stability and protect investors. The Securities and Exchange Board of India (Sebi) is the regulatory body of the securities market under the Ministry of Finance. Sebi also regulates mutual funds, insurance, corporate governance standards, public issues, exchanges, etc.

Role of a Merchant Banker

Merchants bankers originate and negotiate to finance for clients, usually large corporations. They also provide advice on issues such as mergers and acquisitions (M&A), restructurings, and other corporate finance activities.

What is merchant banking?

Merchant banking is a type of investment banking that distinguishes itself from other types of investment banking by the fact that they do not provide advice to companies. Instead, merchant bankers offer advice on mergers and acquisitions, along with providing funding for those transactions.

Implementing and Managing a Merchant Banking Business

Merchant Banking is the financing of the purchase or sale of goods for resale. Merchant banks are financial intermediaries that provide long-term loans to individuals or companies involved in trade – typically international trade.

How to Start a Merchant Banker Business

This document provides (Click here for details)  a set of instructions for those who want to start a merchant banker business. In the past, the purpose of a merchant bank was to help fund businesses. However, in today’s market, this is not necessary as there are many ways for entrepreneurs to get funding from private investors.


In conclusion, merchant banking is a catch-all term for the various types of financial services offered by banks to their customers. Merchant Banking is a diverse field that offers a wealth of career opportunities if you have the motivation and commitment to succeed.

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