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ñ13th Century merchant bankers were traders of
commodities and acted as bankers to the kings
of European states.
ñThey Financed the continental wars and
coastal trades.
ñThey lent their names to lesser known traders
by accepting bills through which they
guaranteed that the holder of the bill would
receive full payment.
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ñdvise on the capital structure, instrument of
issue.
ñPricing
ñssessing and appraisal of project report.
ñppointment of bankers, underwriters,
brokers, registrars, printers and advertisement
agents.
ñHolding brokers-Underwriters,
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ñPress and investor conferences.
ñDeciding the pattern of advertisement.
ñDeciding the collection branches where
application can be received or collected.
ñDeciding on the dates of opening and
closing of the subscription list.
ñObtain daily report of the applications and
amounts collected at branches.

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ñObtaining subscription to the issue.
ñObtain consent of the Stock Exchange and
get basis of allotment approved.
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ñEthics and integrity.
ñReputation.
ñTrained & committed manpower.
ñConcern & interest of clients.
ñLiaison and networking.
ñRelationship & Contacts.
ñInfrastructure.
ñPast performance.
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ñTrack record of the company.
ñTrack record of the promoters.
ñProfessional management.
ñFinancial strength of the promoters and the
company.
ñEconomic viability of the project.

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ñProviding long term funds to the projects or
companies.
ñProject counseling- loan syndication, project
appraisal and arrangement of Working
capital.
ñDeciding the capital structure.
ñPortfolio Management
ñUnderwriting
ñCorporate advisory & issue mgmt.
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ñPrivate placements with NRI·s and FII·s.
ñBrought out deals.
ñMarket Making
ñOTC
ñNSE
ñForex
ñFinancial engineering- M&·s, capital
restructuring.
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 VÀÕ 
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ñM  M 
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ñObserve high standards of integrity and
fairness in all his dealings.
ñRender high standard of service, exercise
due diligence, proper care, exercise
independent judgment & disclose conflict
of interest while providing unbiased
service.
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Code of conduct continued««..
ñNot make any statement or become privy
to any act, practice or unfair competition,
likely to harm the interest of other MB or
is likely to place such other MB in a
disadvantageous position in relation to the
MB, while competing for or executing any
assignment. #
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ñNot make exaggerated statements, written or
oral, to the client either about the qualification
or the capability to render certain services or
his achievements in regard to services rendered
to other clients.
ñRender best possible advice to the client
having regard to the clients needs and the
environment and his own professional skill;
ñEnsure that all professional dealings are
effected in a prompt, efficient and cost
effective manner.

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ñ MB shall not divulge to other clients, press or
any other party any confidential information
about his client, which has come to his
knowledge.
ñDeal in securities of the client company without
making disclosure to the board as required under
the regulation and also to the Board of Directors
of the client company.
ñProvide investors with true and adequate
information without making any misguiding or

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ñ exaggerated claims and are aware of
attendant risks before any investment
decisions are made.
ñ Ensure copies of prospectus,
memorandum and related literature are
made available to investors.
ñFair allotment of securities and refund of
application money without delay.
ñInvestor complaints are adequately dealt
with.
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£ The MB shall not generally and particularly in
respect of issue of any securities be party to
ñCreation of false market
ñPrice rigging or manipulation
ñPassing of price sensitive information or take
any other action which is unethical or unfair
to the investors.
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ñType 1 General Defaults.
ñType 2 Minor Defaults.
ñType 3 Major Defaults.
ñType 4 Serious Defaults.

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ñChapter I ²Preliminary
ñChapter II ² Registration of MB
ñChapter III ² General Obligations and
Responsibilities.
ñChapter IV ² Procedure for Inspection.
ñChapter V ² Procedure for ction in case of
Default.

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ñForm  ² pplication for Grant of
Certificate/Renewal of Certificate.
ñForm B ² Certificate of Registration.
ñForm C ² Due diligence certificate.

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£ Schedule 2 ² Fees
£ Schedule 3 ² Code for Merchant Bankers.

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