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WorksheetsMerchant Banking
Total questions: 30
Worksheet time: 16mins
Merchant banking activities was originated with the merchant banking division set by
yes bank
Grinds bays bank
none of the above
The early growth of merchant banking in the country is assigned to the
Foreign exchange regulations act 1973
fema
Income tax act
State bank of india started merchant banking in _______ followed by icici in ________
1980 , 1981
1978 , 1980
1973 , 1974
Formal merchant banking activity in india was orginated in
1969
1963
1974
A merchant banking is a financial institutions conducting money market activities and a lending
underwriting and financial advice
Investment service
All of above
Lead of merchant banker should advice the issuer to enter into _______________ intermediary for the purpose of issue management.
Agreement
Arrangement
Memorandam of association
Category 1 of merchant banker can act as : ________
All issue management functions
Underwriter
Consultant
The lead merchant bankers under category shall accept a minimum underwriting of _____
20%
0.25%
100%
5%
Merchant banks deal with funds raised through ______________ and capital market.
Secondary Market
Primary Market
money market
Securities market
Merchant bankers are : ___________
Merchant
Banks
Neither merchants nor banks
A merchant bank can help an organization specifically in promotion functions
Sponsoring the issue
Marketing
All of the above
_____________ operates in inter bank call money market.
Commercial Banks
Central Bank (RBI)
Co-operative Banks
Financer house of India
Find odd one : Authorization criteria of merchant bankers
Professional competence
All business performed
Capital adequacy
_______________ covers the entire range of services provided by a merchant banker.
Cooperate counselling
Project counselling
Credit syndication
Functional of financial services exclude : _______
Mobilisation of savings
Collection Tax
Allocation of funds
Financial services companies exclude : ________
Sole proprietor
Inurance companies
Co-operative Banks
commercial banks
Issue management is an important function of _____________ and ___________
Public manager and merchant banker
Bank manager and lead manager
Merchant banker and lead manager
none of the above
Role of merchant banking is Innovation.
False
True
Merchant banks shall not associate with any business other than that of the securities market.
True
False
Merchant bank is an organization that : ________
Underwrites securities for cooperat
Involved in owernship of commercial ventures
All of the above
______ is regarded as the fourth element of the financial system.
Financial services
Financial markets
Financial institutions
Financial instruments
Which of the following is not a fee‐based financial service?
Corporate counseling
Lease financing
Issue management
Profit management
NBFC is a company registered under _________.
The RBI Act
The Indian Contract Act
The Companies Act, 1956
Co-operative society Act
RBI may collect from the merchant bankers an initial authorisation fee, an annual fee and renewal fee.
True
False
Merchant banking in India has been given a specific direction by RBI Regulation.
False
True
Central banking and merchant banking both involve the provision of financial service and advice.
True
False
Responsibilities of merchant bankers.
Legal aspect
Banking policies
To the investors
Corporate dynamics
Qualities of good merchant bankers.
Entry restrictions
Leadership
Aggressive action
Non-cooperative
Attitude towards problem solving
Merchant Bank can not provide loan to individuals and small business
True
False
Find odd one: challenges faced by the merchant bankers in India.
Entry restrictions
Legal aspect
Poor new issue market
Banking policies
SEBI guidelines
