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Scope of Merchant Banker License What are the Categories What are the Benefits How to Apply Timeline Key Documents Role Know the Multi-Layer SEBI’s Code of Conduct Eligibility Criteria Difference Why Trust Enterslice FAQs Schedule Meeting What is a Merchant Banker License and Why is it Important? If you are a financial entity seeking a challenging career with great advancement opportunities, obtaining a SEBI-approved merchant banker license may be the key to success. A merchant banker license is SEBI’s official approval allowing you to conduct merchant banking activities. The issuance of a merchant banker license serves as a regulatory approval that helps protect investors’ interests and uphold the highest standards of legal and ethical conduct in the financial market. Worried about the challenges faced while getting your SEBI merchant banker registration done? Connect with Enterslice to empower professionals and firms to offer capital-raising, merger and acquisition, and project financing services in India. Obtain a SEBI-approved merchant banking license to act as intermediaries between companies and investors, thereby offering expert guidance throughout the financial lifecycle. Acts as a SEBI-registered merchant banker Approximately 236 merchant bankers are registered with SEBI Growing pool of IPO-ready firms across fintech & SaaS Underwrites and manages public issues & private placements Advisory for mergers, acquisitions, and corporate restructuring Enhance trust & credibility in capital markets Helps companies in raising their capital efficiency Support project financing & portfolio management services 227 SME IPOs Listed in 2025 Get SEBI Merchant Banker Registration and Join India’s $4.2 Trillion Capital Market with Us Let our experts help you secure SEBI merchant banker registration. Gear up to be a part of India’s booming $4.2 trillion capital market. Get Started Now What is the Scope of the Merchant Banker License Consultancy Services? The scope of merchant banker license consultancy services extends to the following activities, as discussed below: Underwriting of Securities The scope of the merchant banker license consultancy services extends to underwriting securities, thereby ensuring successful capital raising for businesses. IPO & Issue Management Merchant banker license consultancy services include managing public offerings such as initial public offerings (IPOs), follow-on offerings, and private placements. Corporate Advisory Services It includes corporate advisory services, including mergers, acquisitions, takeovers, disinvestments, and other securities-related market restructuring. Project Advisory The scope of the merchant banker license extends to providing expert advice and consulting on projects linked to capital raising or securities market financing. Loan Syndication It includes syndication of rupee-term loans (for corporate funding) in connection with securities-market activities. Debt Market & Government Securities Support The scope of the merchant banker license includes facilitating debt-market activities and government securities dealings where permitted. What are the Categories of Merchant Bankers in India? Under the SEBI (Merchant Bankers) Regulations, 1992, as amended in 2025, merchant bankers in India are classified into two categories of merchant bankers based on their authorized activities and financial capacity, as follows: Category I Merchant Bankers :- Category I Merchant Bankers are full-service intermediaries authorized to undertake all merchant banking activities under the SEBI (Merchant Bankers) Regulations, 1992, as amended in 2025. Their scope of work includes managing public issues, underwriting securities, providing corporate advisory services, handling mergers and acquisitions, and undertaking capital restructuring assignments. To operate as a Category I Merchant Banker, you must maintain a minimum net worth of โน25 crore by Phase I (on or before 02 January 2027) and increase the same to โน50 crore by Phase II (on or before 02 January 2028). In addition, they are required to maintain a minimum liquid net worth of โน6.25 crore on or before January 02, 2027 and โน12.5 crore on or before January 02, 2028, as prescribed by the SEBI new amendment. Category II Merchant Bankers :- Category II Merchant Bankers can carry out advisory and issue management activities, excluding lead management of main-board equity IPOs. They may manage rights issues, open offers, buybacks, SME IPOs, debt syndication, and provide corporate restructuring and financial advisory services. They must meet phased capital requirements: โน7.5 crore net worth by 2 January 2027 (Phase I), along with a liquid net worth of โน1.875 crore and โน10 crore net worth by 2 January 2028 (Phase II), with a minimum liquid net worth of โน2.5 crore as per SEBI norms. Note: Category III and IV merchant bankers were abolished. They are not eligible for registration. What are the Benefits of Obtaining a Merchant Banker License? The benefits of obtaining a merchant banker license in India are as discussed below: Access to the Capital Market Obtaining a merchant banker license helps companies to raise capital through underwriting and managing public issues. Portfolio Management Obtaining a merchant banker license ensures professional portfolio management, ultimately helping companies boost returns on their investments. Regulatory Compliance A SEBI-approved merchant banker license ensures that all operations comply with SEBI’s regulatory framework, promoting transparency and enhanced investor protection. Boosts Credibility Becoming a SEBI-approved merchant banker boosts market credibility, thereby making it easier to attract corporate clients, institutional investors, and strategic partners. Revenue Generation Becoming a licensed merchant banker helps entities generate revenue through advisory fees, underwriting commissions, issue management charges, and portfolio management services. Economic Contribution Obtaining a merchant banker license facilitates capital formation, funds corporate expansion, and strengthens financial market efficiency. Builds Client Relationship Obtaining a merchant banker license helps build relationships with clients, including companies, banks, and government bodies. Diversified Opportunities Obtaining a merchant banker license provides access to a range of financial opportunities, including corporate finance, investment banking, and advisory services. Legal Protection Obtaining a merchant banker license from SEBI provides a legal framework for protecting both the intermediary and the investor’s accountability. How to Apply for Merchant Banker License? The process to apply for merchant banker license in India requires compliance with the following steps, as discussed below: File Application (Form A) The first step requires the applicant to file Form A along with all required declarations and supporting information, as prescribed under the SEBI (Merchant Bankers) Regulations, 1992. Payment of Application Fee The next step requires the applicant to pay the non-refundable application fee in the manner prescribed by the Securities and Exchange Board of India. Attach Relevant Documents Next, the applicants must attach all relevant documents, including the certificate of incorporation, the M&AOA, the net worth certificate, and details of management and key personnel. SEBI Verification and Eligibility Criteria In the next step, the Securities and Exchange Board of India examines whether the applicants meet all eligibility criteria, including the minimum net worth requirement, adequate infrastructure, qualified personnel, and fit-and-proper status. SEBI Review and Clarifications Next, the Securities and Exchange Board of India may request additional information, conduct background checks, or seek clarifications to facilitate the smooth processing of a merchant banker license in India. Grant of Certificate of Registration Once SEBI is satisfied with compliance and eligibility, it issues the certificate of registration, thereby allowing the operation of a merchant banker license in India. What is the Timeline for Obtaining a Merchant Banker License from SEBI? The timeline for obtaining a merchant banker license from SEBI is usually 3 to 6 months, depending on the completion of the application process. Have a look at the timeline breakdown, as discussed below: Document Preparation & Application Filing: 1 Month It takes around 1 month to prepare Form A, collect documents, and compile financial details. SEBI’s Initial Review: 1 Month It takes around 1 month to conduct a preliminary assessment to verify the completeness of documents, infrastructure and manpower details. SEBI’s Request for Additional Information: 1 to 2 Months Seeking clarification from SEBI or responding to queries takes around 1 to 2 months. Final Evaluation & Grant of License: 1 to 2 Months It takes about 1 to 2 months to complete the final review and obtain the merchant banker license from SEBI. What are the Key Documents to Apply for Merchant Banking License in India? The list of essential documents required to apply for merchant banking license in India is as follows: Memorandum and Articles of Association (M&AOA) Certificate of incorporation of the company Unique Identification Number of the applicant Certified true copy of PAN card for the applicant Financial statements of all the applicants Detailed report from principal bankers Details of infrastructural facilities Details of the financial accounts Details of directors, promoters, and shareholders Details of Key Managerial Personnel Board resolution for the appointment of directors Declaration signed by at least 2 Directors Details of associated registered intermediaries Designated email IDs for investor complaints Organisation’s internal structure details Educational qualification details of all the Directors Any other supporting documents (if required) What is the Role of Merchant Bankers in India? Merchant bankers are key players in driving the growth and development of startups in India. They act as key intermediaries that facilitate the growth of the entrepreneurial ecosystem for startups, corporations, and growing enterprises. Generally, the merchant bankers are involved in a variety of tasks, including assessing value, raising funds, promoting activities, and managing projects. Have a look at the key roles and responsibilities of merchant bankers in India, as discussed below: Startup Valuation Merchant bankers provide expert valuation reports to startups, thereby playing a critical role in fostering investment credibility in India. Raising of Funds Merchant bankers play a primary role in raising funds, thereby helping startups access various capital structures and the private equity system. Management & Promotional Activities Merchant bankers play a vital role by providing crucial support in promoting business ideas, such as feasibility studies and feasibility reports. Project Planning and Control Merchant bankers are also involved in project management, thereby focusing on the financial aspects of business operations in India. Know the Multi-Layer Capital Framework for Obtaining a Merchant Banker License? The restructured multi-layer capital framework required for obtaining a merchant banker license in India is as discussed below: Minimum Net Worth :- As per the SEBI (Merchant Bankers) Amendment Regulations, 2025, Category I Merchant Bankers must maintain a minimum net worth of โน25 crore by Phase I (on or before 02 January 2027) and โน50 crore by Phase II (on or before 02 January 2028). Category II Merchant Bankers are required to maintain โน7.5 crore by Phase I (on or before 02 January 2027) and โน10 crore by Phase II (on or before 02 January 2028). New applicants must meet the full revised net worth requirement at the time of application. Liquid Net Worth :- Merchant bankers must maintain liquid net worth equal to 25% of their prescribed net worth in each phase: โน6.25 crore (Category I) and โน1.875 crore (Category II) in Phase I; โน12.5 crore (Category I) and โน2.5 crore (Category II) in Phase II. Underwriting Limit :- Category I Merchant Bankers with a liquid net worth of โน12.5 crore can underwrite up to โน250 crore, while Category II Merchant Bankers with โน2.5 crore liquid net worth are permitted to underwrite up to โน50 crore. Revenue Threshold :- Category I Merchant Bankers must earn โน25 crore cumulative revenue over the last 3 years, whereas Category II Merchant Bankers must earn โน5 crore cumulative revenue over the last 3 years from SEBI permitted activities. The first assessment period begins with FY 2028-29 (April 1, 2029). SEBI’s Code of Conduct for Merchant Bankers Merchant bankers must comply with the SEBI-developed comprehensive code of conduct, which helps maintain their integrity and moral behaviour in India. Maintain confidentiality for the protection of private customer data Disclose and resolve any conflicts of interest Treat every party with equal respect and honesty Deliver accurate and trustworthy information Keep abreast with current advancements within the sector Report any infractions of code to uphold moral principles and responsibility Merchant Bankers cannot outsource core activities. Existing arrangements must end by 3 April 2026. Eligibility Criteria for SEBI Merchant Banker Registration The eligibility criteria mandatory for SEBI merchant banker registration in India is as discussed below: What is the Checklist for SEBI Merchant Banker Registration? Must be a body corporate incorporated under the Companies Act. Hire at least 2 individuals with relevant experience in the merchant banking sector. Have adequate infrastructure, including office space, equipment, and manpower. Must have at least 2 Key Managerial Personnel (KMPs) with relevant experience. Must maintain a minimum net worth: Category I - โน25 crore by Phase I and โน50 crore by Phase II. Category II - โน7.5 crore by Phase I and โน10 crore by Phase II. As per the SEBI (Merchant Bankers) Amendment Regulations, 2025, total underwriting obligations of a merchant banker cannot exceed 20 times its liquid net worth. Existing merchant bankers must comply by 02 January 2028, with a CA certificate confirming compliance submitted as part of the half-yearly report. A CA certificate must confirm that the net worth and liquid net worth of the merchant banker have been maintained throughout the reporting period, not just at the end, and be submitted with the half-yearly report. What are the Qualification Conditions for SEBI Merchant Bankers? Must have high-level finance credentials such as an MBA, CA, or CFA. Must be skilled in financial modelling, risk management, and strategic financial planning. Must have a clean compliance record with no history of violations or financial misconduct. Must have previous experience in the merchant banking field. Must qualify for the NISM Series IX examination in India. Must comply with fit and proper criteria and other ethical guidelines. Minimum 2 employees and the Compliance Officer must hold NISM Series IX (Merchant Banking) certification, and the Compliance Officer must additionally possess NISM Series III-A (Securities Intermediaries Compliance - Non-Fund) certification. Existing merchant bankers must comply on or before 02 January 2027, while new hires on or after 03 January 2026 must obtain the required certifications within 90 days of appointment. The Principal Officer must have a minimum of 5 years’ experience in financial markets. Existing Merchant Bankers must comply by 02 January 2027, while new applicants must meet this criterion at the time of application as per the new amendment. Schedule Meeting Difference between a Merchant Banker and an Investment Banker The key differences between a merchant banker and an investment banker are as outlined below: Aspect Merchant Banker Investment Banker Meaning A merchant banker is a financial institution or individual that provides financial advisory and capital market services. An investment banker helps companies raise capital, underwrite securities, and execute large financial transactions. Primary Focus Focus on long-term strategic financial advisory, issue management, project financing, and corporate restructuring. Focus on short-term, transactional, and capital-market-driven activities. Regulation Regulated by SEBI under the SEBI (Merchant Bankers) Regulations, 1992. Regulated by financial authorities such as SEBI, RBI, and other regulators. Services Offered Provides corporate finance, IPO management, project counselling, international trade finance, loan syndication, and portfolio management. Underwrites securities, advises on mergers and acquisitions (M&A), and assists companies in raising capital. Clientele Primarily serves private businesses, mid-sized businesses, and high-net-worth individuals. Works mostly with large corporations, institutional investors, and governments. Risk Profile Often involves long-term investments and risk exposure. Typically involves transactional risk in underwriting and deal execution. Compliance Guidelines for Merchant Banker License As per the SEBI (Merchant Bankers) Amendment Regulations, 2025, the following compliance needs to be complied with for a merchant banker license accordingly: 1. Disclosure When Only Marketing an Issue: If connected persons of a Merchant Banker (MB) hold more than 0.1% or โน10 lakh (whichever is lower) of paid-up capital or shares, individually or collectively, in the issuer, the MB cannot act as a lead manager. In such cases, the MB may act only as a marketing intermediary, provided full disclosures are made in the offer documents. This requirement applies to all public issues filed on or after 3 January 2026. 2. Conditions for Non-SEBI Regulated Activities: Non-SEBI regulated activities must be carried out through Separate Business Units (SBU), with appropriate Chinese walls and ring-fencing to prevent conflicts of interest. Merchant Bankers are required to maintain website disclosures, client acknowledgements, separate records, and ensure board oversight for these activities. Existing Merchant Bankers must complete the segregation of non-SEBI activities by 3 July 2026. 3. Ongoing Undertakings & Disclosures: Merchant Bankers are required to submit undertakings in their half-yearly reports confirming compliance with SEBI regulations. They must maintain website disclosures for non-SEBI activities and provide CA certifications verifying adherence to financial thresholds and regulatory obligations. Why Partner with Enterslice to Apply for Merchant Banker License? If you are looking to begin your journey as a merchant banker, partnering with Enterslice can help you simplify the SEBI registration process with more compliance. Besides SEBI merchant banker registration, we also help in AIF registration, asset management company registration, SEBI research analyst registration, etc. Here are the key reasons why you should choose Enterslice to apply for merchant banker license in India: Network of 10,000+ CAs, CSs, lawyers, and capital market experts Serves across 5000+ pin codes in India Consistent 99% success rate in obtaining a merchant banker license Consultants with extensive experience in SEBI merchant banker regulations End-to-end professional assistance throughout the licensing process Efficient handling of documentation & other financial statements Offers a free initial consultation for merchant banker license applicants Guarantees the best competitive price with no hidden charges Help mitigate regulatory risks during SEBI’s evaluation and approval process Prioritizes fast processing and minimal delays Ensures 100% compliance with SEBI norms and capital market guidelines Get a one-stop solution for licensing, compliance, and capital market services Frequently Asked Questions on SEBI Merchant Banker Registration Who is a merchant banker? A merchant banker is a financial institution or individual that provides advisory services and raises capital for corporations. It further helps businesses to manage complex financial transactions, such as IPOs, mergers and acquisitions, and corporate restructuring. Who is a category 1 merchant banker? A Category I merchant banker is a financial professional registered with the Securities and Exchange Board of India. It also provides a wide range of services, including acting as an issue manager for IPOs, serving as an advisor, consultant, underwriter, and portfolio manager. Can a CA become a merchant banker? Yes, a Chartered Accountant (CA) can become a merchant banker in India. However, the path is not based on the CA qualification alone, but also ensures compliance with category I merchant banker requirements as stated in the regulations. Who is the concerned authority for setting up a merchant bank in India? The Securities and Exchange Board of India is the authority responsible for regulating the merchant banking business under the SEBI (Merchant Bankers) Regulations, 1992. However, the Reserve Bank of India is another regulatory authority responsible for overseeing merchant banking operations in India. What is included in the scope of a Category I merchant banker with a merchant banking license? It indicates the highest level of merchant banking. The scope of category I merchant banker includes managing main board equity IPOs, buybacks, open offers, delisting, rights issues and QIPs, corporate restructuring and advisory, debt and hybrid issuances, and lead management of public issues. What is included in the scope of a Category II merchant banker with a merchant banker license? It is designed for mid-sized advisory and issue managers. It can perform all the responsibilities of a merchant banker except managing the main board equity IPOs. The scope of category II merchant banker includes rights issues, open offers, delisting, buybacks, SME IPOs, corporate advisory, etc. How to get a merchant banking license? The process for obtaining a merchant banker license requires compliance with the steps set out by the Securities and Exchange Board of India. Here are the details of the complete process for obtaining a merchant banker license in India: Step 1: File Application (Form A) Step 2: Payment of Application Fee Step 3: Attach Relevant Documents Step 4: SEBI Verification and Eligibility Criteria Step 5: SEBI Review and Clarifications Step 6: Grant of Certificate of Registration What is merchant banking certification? A merchant banking certification is a professional qualification, such as NISM Series IX Merchant Banking Certification, that validates an individual’s knowledge of the Indian securities market. However, this certification is required for employees working with SEBI-registered merchant bankers and covers topics such as issue management, mergers and acquisitions, and other relevant regulations. What is the fee for a merchant banker? The fees for a merchant banker in India are structured to include application fees, initial registration fees, and renewal fees, charged in accordance with the SEBI regulations. How many types of merchant bankers are there? Generally, there exist four types of merchant bankers in India. The category I merchant banker includes full-service; category II merchant banker includes limited services; category III merchant banker includes underwriters, advisors, and consultants; and category IV merchant banker includes advisors and consultants only. What is a category II merchant banker? A Category II Merchant Banker is authorized to provide a range of advisory and issue management services, excluding the lead management of main-board equity IPOs. This includes activities such as managing rights issues, open offers, buybacks, SME IPOs, debt syndication, and corporate restructuring. In compliance with SEBI’s new regulatory amendment, they must meet stepped capital adequacy requirements in phase wise such as achieving a net worth of โน7.5 crore with a liquid net worth of โน1.875 crore by 2 January 2027 (Phase I), and increasing to a net worth of โน10 crore with a liquid net worth of โน2.5 crore by 2 January 2028 (Phase II). Who is the No. 1 merchant banker in India? There is no single No. 1 merchant banker in India. However, ICICI Securities, Axis Capital, Kotak Mahindra Capital, and SBI Capital Markets are some of the best-ranked merchant bankers in India. Moreover, the ranking can differ depending on the specific metric used, such as the number of IPOs, market share, or deal value. What financial services do merchant bankers offer? Merchant bankers offer financial advisory and capital-raising services to corporations and high-net-worth individuals. However, the key financial services include follow-ups on IPOs, underwriting, mergers and acquisitions advice, and corporate restructuring. Is a merchant banker a private or public entity? A merchant bank can be either a private or a public entity, because they are typically structured as a corporate body and serves a client base that includes both private firms and public companies. Which is the largest merchant banker in India? Kotak Mahindra Capital, followed by SBI Capital Markets and Axis Capital, are among the largest merchant bankers in India. Can foreign entities apply for a merchant banker license in India? Yes, foreign entities that already have an Indian substitute or associate registered with the Securities and Exchange Board of India can apply for a merchant banker license in India.
If you are a financial entity seeking a challenging career with great advancement opportunities, obtaining a SEBI-approved merchant banker license may be the key to success. A merchant banker license is SEBI’s official approval allowing you to conduct merchant banking activities. The issuance of a merchant banker license serves as a regulatory approval that helps protect investors’ interests and uphold the highest standards of legal and ethical conduct in the financial market.
Worried about the challenges faced while getting your SEBI merchant banker registration done? Connect with Enterslice to empower professionals and firms to offer capital-raising, merger and acquisition, and project financing services in India. Obtain a SEBI-approved merchant banking license to act as intermediaries between companies and investors, thereby offering expert guidance throughout the financial lifecycle.
Acts as a SEBI-registered merchant banker
Approximately 236 merchant bankers are registered with SEBI
Growing pool of IPO-ready firms across fintech & SaaS
Underwrites and manages public issues & private placements
Advisory for mergers, acquisitions, and corporate restructuring
Enhance trust & credibility in capital markets
Helps companies in raising their capital efficiency
Support project financing & portfolio management services
227 SME IPOs Listed in 2025
Let our experts help you secure SEBI merchant banker registration. Gear up to be a part of India’s booming $4.2 trillion capital market.
The scope of merchant banker license consultancy services extends to the following activities, as discussed below:
The scope of the merchant banker license consultancy services extends to underwriting securities, thereby ensuring successful capital raising for businesses.
Merchant banker license consultancy services include managing public offerings such as initial public offerings (IPOs), follow-on offerings, and private placements.
It includes corporate advisory services, including mergers, acquisitions, takeovers, disinvestments, and other securities-related market restructuring.
The scope of the merchant banker license extends to providing expert advice and consulting on projects linked to capital raising or securities market financing.
It includes syndication of rupee-term loans (for corporate funding) in connection with securities-market activities.
The scope of the merchant banker license includes facilitating debt-market activities and government securities dealings where permitted.
Under the SEBI (Merchant Bankers) Regulations, 1992, as amended in 2025, merchant bankers in India are classified into two categories of merchant bankers based on their authorized activities and financial capacity, as follows:
The benefits of obtaining a merchant banker license in India are as discussed below:
Obtaining a merchant banker license helps companies to raise capital through underwriting and managing public issues.
Obtaining a merchant banker license ensures professional portfolio management, ultimately helping companies boost returns on their investments.
A SEBI-approved merchant banker license ensures that all operations comply with SEBI’s regulatory framework, promoting transparency and enhanced investor protection.
Becoming a SEBI-approved merchant banker boosts market credibility, thereby making it easier to attract corporate clients, institutional investors, and strategic partners.
Becoming a licensed merchant banker helps entities generate revenue through advisory fees, underwriting commissions, issue management charges, and portfolio management services.
Obtaining a merchant banker license facilitates capital formation, funds corporate expansion, and strengthens financial market efficiency.
Obtaining a merchant banker license helps build relationships with clients, including companies, banks, and government bodies.
Obtaining a merchant banker license provides access to a range of financial opportunities, including corporate finance, investment banking, and advisory services.
Obtaining a merchant banker license from SEBI provides a legal framework for protecting both the intermediary and the investor’s accountability.
The process to apply for merchant banker license in India requires compliance with the following steps, as discussed below:
The first step requires the applicant to file Form A along with all required declarations and supporting information, as prescribed under the SEBI (Merchant Bankers) Regulations, 1992.
The next step requires the applicant to pay the non-refundable application fee in the manner prescribed by the Securities and Exchange Board of India.
Next, the applicants must attach all relevant documents, including the certificate of incorporation, the M&AOA, the net worth certificate, and details of management and key personnel.
In the next step, the Securities and Exchange Board of India examines whether the applicants meet all eligibility criteria, including the minimum net worth requirement, adequate infrastructure, qualified personnel, and fit-and-proper status.
Next, the Securities and Exchange Board of India may request additional information, conduct background checks, or seek clarifications to facilitate the smooth processing of a merchant banker license in India.
Once SEBI is satisfied with compliance and eligibility, it issues the certificate of registration, thereby allowing the operation of a merchant banker license in India.
The timeline for obtaining a merchant banker license from SEBI is usually 3 to 6 months, depending on the completion of the application process. Have a look at the timeline breakdown, as discussed below:
It takes around 1 month to prepare Form A, collect documents, and compile financial details.
It takes around 1 month to conduct a preliminary assessment to verify the completeness of documents, infrastructure and manpower details.
Seeking clarification from SEBI or responding to queries takes around 1 to 2 months.
It takes about 1 to 2 months to complete the final review and obtain the merchant banker license from SEBI.
The list of essential documents required to apply for merchant banking license in India is as follows:
Memorandum and Articles of Association (M&AOA)
Certificate of incorporation of the company
Unique Identification Number of the applicant
Certified true copy of PAN card for the applicant
Financial statements of all the applicants
Detailed report from principal bankers
Details of infrastructural facilities
Details of the financial accounts
Details of directors, promoters, and shareholders
Details of Key Managerial Personnel
Board resolution for the appointment of directors
Declaration signed by at least 2 Directors
Details of associated registered intermediaries
Designated email IDs for investor complaints
Organisation’s internal structure details
Educational qualification details of all the Directors
Any other supporting documents (if required)
Merchant bankers are key players in driving the growth and development of startups in India. They act as key intermediaries that facilitate the growth of the entrepreneurial ecosystem for startups, corporations, and growing enterprises. Generally, the merchant bankers are involved in a variety of tasks, including assessing value, raising funds, promoting activities, and managing projects.
Have a look at the key roles and responsibilities of merchant bankers in India, as discussed below:
Merchant bankers provide expert valuation reports to startups, thereby playing a critical role in fostering investment credibility in India.
Merchant bankers play a primary role in raising funds, thereby helping startups access various capital structures and the private equity system.
Merchant bankers play a vital role by providing crucial support in promoting business ideas, such as feasibility studies and feasibility reports.
Merchant bankers are also involved in project management, thereby focusing on the financial aspects of business operations in India.
The restructured multi-layer capital framework required for obtaining a merchant banker license in India is as discussed below:
Merchant bankers must comply with the SEBI-developed comprehensive code of conduct, which helps maintain their integrity and moral behaviour in India.
The eligibility criteria mandatory for SEBI merchant banker registration in India is as discussed below:
What is the Checklist for SEBI Merchant Banker Registration?
What are the Qualification Conditions for SEBI Merchant Bankers?
The key differences between a merchant banker and an investment banker are as outlined below:
As per the SEBI (Merchant Bankers) Amendment Regulations, 2025, the following compliance needs to be complied with for a merchant banker license accordingly:
If you are looking to begin your journey as a merchant banker, partnering with Enterslice can help you simplify the SEBI registration process with more compliance. Besides SEBI merchant banker registration, we also help in AIF registration, asset management company registration, SEBI research analyst registration, etc. Here are the key reasons why you should choose Enterslice to apply for merchant banker license in India:
A merchant banker is a financial institution or individual that provides advisory services and raises capital for corporations. It further helps businesses to manage complex financial transactions, such as IPOs, mergers and acquisitions, and corporate restructuring.
A Category I merchant banker is a financial professional registered with the Securities and Exchange Board of India. It also provides a wide range of services, including acting as an issue manager for IPOs, serving as an advisor, consultant, underwriter, and portfolio manager.
Yes, a Chartered Accountant (CA) can become a merchant banker in India. However, the path is not based on the CA qualification alone, but also ensures compliance with category I merchant banker requirements as stated in the regulations.
The Securities and Exchange Board of India is the authority responsible for regulating the merchant banking business under the SEBI (Merchant Bankers) Regulations, 1992. However, the Reserve Bank of India is another regulatory authority responsible for overseeing merchant banking operations in India.
It indicates the highest level of merchant banking. The scope of category I merchant banker includes managing main board equity IPOs, buybacks, open offers, delisting, rights issues and QIPs, corporate restructuring and advisory, debt and hybrid issuances, and lead management of public issues.
It is designed for mid-sized advisory and issue managers. It can perform all the responsibilities of a merchant banker except managing the main board equity IPOs. The scope of category II merchant banker includes rights issues, open offers, delisting, buybacks, SME IPOs, corporate advisory, etc.
The process for obtaining a merchant banker license requires compliance with the steps set out by the Securities and Exchange Board of India. Here are the details of the complete process for obtaining a merchant banker license in India:
A merchant banking certification is a professional qualification, such as NISM Series IX Merchant Banking Certification, that validates an individual’s knowledge of the Indian securities market. However, this certification is required for employees working with SEBI-registered merchant bankers and covers topics such as issue management, mergers and acquisitions, and other relevant regulations.
The fees for a merchant banker in India are structured to include application fees, initial registration fees, and renewal fees, charged in accordance with the SEBI regulations.
Generally, there exist four types of merchant bankers in India. The category I merchant banker includes full-service; category II merchant banker includes limited services; category III merchant banker includes underwriters, advisors, and consultants; and category IV merchant banker includes advisors and consultants only.
A Category II Merchant Banker is authorized to provide a range of advisory and issue management services, excluding the lead management of main-board equity IPOs. This includes activities such as managing rights issues, open offers, buybacks, SME IPOs, debt syndication, and corporate restructuring. In compliance with SEBI’s new regulatory amendment, they must meet stepped capital adequacy requirements in phase wise such as achieving a net worth of โน7.5 crore with a liquid net worth of โน1.875 crore by 2 January 2027 (Phase I), and increasing to a net worth of โน10 crore with a liquid net worth of โน2.5 crore by 2 January 2028 (Phase II).
There is no single No. 1 merchant banker in India. However, ICICI Securities, Axis Capital, Kotak Mahindra Capital, and SBI Capital Markets are some of the best-ranked merchant bankers in India. Moreover, the ranking can differ depending on the specific metric used, such as the number of IPOs, market share, or deal value.
Merchant bankers offer financial advisory and capital-raising services to corporations and high-net-worth individuals. However, the key financial services include follow-ups on IPOs, underwriting, mergers and acquisitions advice, and corporate restructuring.
A merchant bank can be either a private or a public entity, because they are typically structured as a corporate body and serves a client base that includes both private firms and public companies.
Kotak Mahindra Capital, followed by SBI Capital Markets and Axis Capital, are among the largest merchant bankers in India.
Yes, foreign entities that already have an Indian substitute or associate registered with the Securities and Exchange Board of India can apply for a merchant banker license in India.
Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work.
Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.
-- Testimonials
โEnterslice and Its team made starting my company and running very easy. Their contribution in raising funds was immense. I highly recommend Enterslice to any one who wants to start a business in India. Thank you guys keep up the good work.โ
CEO - Solarix
โVery professional services. I am highly impressed by their courteous and client oriented attitude.โ
F Salon Paris
โThanks for your services. The team is really professional. They make sure that things are delivered in time. The best part about Enterslice is the consultative approach and guiding us on all our business matters.โ
Haiden Group - UAE
โI would like to thank the Enterslice team for the excellent business plan made by them. They understood our requirement and gave us exactly what we wanted. Thank you Team Enterslice.โ
โI have registered my Trademark through them. The application was filed within 3 days. And the charges were also very reasonable. We got TM Approved in 6 monthโs time without any re-submission or objection. They charge high to deliver the best in industry.โ
โThey provided customized and Highly skilled CA &services. The management invests themselves in your work. They ensured timely NBFC registration and are always ready and prepared with excellent advisory services. The best part of working with Enterslice is they are not having expertise of law but they are well versed with Digital marketing skills &fintech business model.โ
โGreat set of people working together. Very customer friendly. I am very satisfied with the food license registration services and will definitely come back for other similar requirements.โ
โI came to know about Enterslice through a friend. Since then I have done GST Registration through them. The services are consumer centric and fast. I have recommended them to many of my acquaintance already.โ
โI chose Enterslice to start my new Indian adventure as entrepreneur, and respect my past experience i was surprised by their professionalism. In particular, Raksha T. followed my startup process, and i was delighted with her support on every moment. Great, great experience.โ
โAmazing services provided by your organization. They have completed our NBFC registration order within stipulated time period of 90 days. They provide constant guidance and support in the process. Their support in building fintech software is amazing.โ
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