Economics · Merchant Banking

Analyze the following seven statements concerning the regulatory and operational aspects of Merchant Banking in India under SEBI guidelines: Statement 1: A Merchant Banker registered in Category I can act as a registrar to an issue or a share transfer agent without any additional registration, as their license is comprehensive. Statement 2: The SEBI (Merchant Bankers) Regulations prohibit a merchant banker from carrying on any business other than that in the securities market, with some exceptions for banking companies. Statement 3: In an IPO, the Merchant Banker must ensure that the 'Minimum Subscription' of 90 percent of the total issue is received, otherwise the entire issue must be aborted and money refunded. Statement 4: The 'Underwriting Commission' is paid to the merchant banker even if the issue is fully subscribed by the public, as it is a fee for the risk undertaken. Statement 5: Merchant Bankers are allowed to accept deposits from the public as long as they provide a guarantee of a 10 percent annual return. Statement 6: The 'Due Diligence Certificate' filed by the lead manager with SEBI states that they have independently verified the contents of the prospectus. Statement 7: A 'Merchant Banker' and an 'Investment Banker' are terms used interchangeably in most global markets, including India, though the Indian law specifically uses the former. Which of the following describes the correct status of these statements?