a. No person shall carry on the activity as a merchant banker unless he holds a certificate granted by SEBI
b. A merchant banker is required to have a minimum net worth of not less than 5 crore
c. An applicant required to send application form A along with additional information along with a non-refundable fee of 50000 by way of demand draft.
d. Every merchant banker is required to pay 20 lakh as registration fee (as per SEBI regulation, 2014) at the time of grant of certificate of initial registration by SEBI. And this certificate of initial registration remains for 5 years. The merchant banker must apply to SEBI for a permanent certificate, 3 months before the expiry of the validity of the initial registration certificate, if he wishes to continue as a merchant banker.
e. For permanent registration, the merchant banker is required to pay 9 lakh for the first block of 3 years towards permanent registration payable in term of schedule iii of SEBI regulation 1992.
f. Merchant banker is required to take SEBI’s prior approval for change in control.
In addition to the information furnished in form A, the applicant is also required to furnish the detailed information on the following areas, as per the instructions contained therein.
a. MOA & AOA of company (Memorandum and Article of Association of the applicant company)
b. Provide the UIN obtained under MAPIN for the applicant.
c. Details of Directors/ Promoters & shareholding pattern
d. Details of Key personnel
e. Details of infrastructure facilities
f. Details regarding registration as NBFC
g. Financial Accounts of the applicant
h. Report from principal bankers
l. Declaration by at least two directors