"Merchant bankers are the key intermediary between the company and issue of capital." Comment.

Merchant Bankers are the key intermediary between the company and issue of capital. It is quite common to come across reference to Merchant Banking and financial services as though they are distinct categories. The services provided by Merchant Bankers depend on their inclination and resources - technical and financial. Merchant bankers (Category I) are mandated by SEBI to manage public issues. These activities have major implications for the integrity of the market. They affect investors' interest and, therefore, transparency has to be ensured. Merchant Bankers are rendering diverse services and functions. These include organising and extending finance for investment in projects, assistance in financial management, raising Euro dollar loans and issue of foreign currency bonds. Different merchant bankers specialised in different services. SEBI has advised that merchant Bankers shall undertake only those activities which relate to securities market. These activities are managing of public issue of securities; underwriting connected with the aforesaid public issue management business; managing/ advising on international offerings of debt/equity i.e. GDR, ADR, bonds and other instruments etc.