Discussion
Which among the following is not true with regard to merchandise banker?
(i) It can accept deposits
(ii) It can advance loans
(iii) It can do other banking activities
(iv) It can be manager to a public issues
Answer: D
Correct answer: i, ii and iii
A merchant banker is a capital market intermediary registered with SEBI, not a bank. It may not accept deposits (i), may not advance loans in the banking sense (ii), and may not carry on other banking activities (iii) - so all three of those statements are untrue of it.
Statement (iv) is true and therefore not part of the answer: acting as lead manager to a public issue is precisely a merchant banker's core function, alongside underwriting, advising on capital structure, and managing rights issues and takeovers.
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development