NISM Series-IX: Merchant Banking Practice Exam

The NISM Series-IX: Merchant Banking Exam aims to establish a standardized level of fundamental knowledge for individuals employed with SEBI registered Merchant Bankers, who:

• Engage in SEBI regulated activities such as initial public offerings, further public offerings, Open Offers, Buy-backs, and Delisting.
• Handle dealings with issuers pertaining to the activities mentioned above.
• Interact with intermediaries associated with the aforementioned activities.
• Serve as designated Compliance Officers overseeing the activities outlined in point (a).
• Provide Due Diligence Certificates to SEBI in relation to the activities mentioned in point (a).

Furthermore, the examination aims to ensure a foundational comprehension of various aspects of capital market operations, the procedures involved in the functions of registered Merchant Bankers, and the regulatory framework within which they operate.

Upon successful completion of the exam, candidates should:

• Possess a basic understanding of Merchant Banking in India.
• Comprehend the operations of Merchant Bankers concerning the Issue Management Process, Substantial Acquisition of Equity Shares, Buyback of Equity Shares, and Delisting of Shares.
• Be familiar with the regulatory landscape governing Merchant Bankers' operations in India.

Who should take the exam?

The NISM Series-IX: Merchant Banking exam is designed for individuals who want to work in the Indian securities market, specifically in roles related to merchant banking activities. The ideal candidates are:

• Merchant Banker Employees
• Those Aspiring for Merchant Banking Careers
• Finance Professionals

Exam Details

• Exam Name: NISM Series-IX: Merchant Banking
• Exam Languages: English
• Exam Questions: 100 Questions
• Time: 120 minutes
• Passing Score: 60%

Exam Course Outline 

The Exam covers the given topics  - 

Chapter 1: Introduction to Capital Market

• Introduction to Capital Market

Chapter 2: Overview of Merchant Banking

• Concept and Evolution of Merchant Banking
• Merchant Banking in India
• Regulatory Framework for Merchant Bankers in India

Chapter 3: Registration, Code of Conduct & General Obligations of Merchant Bankers in India

• Introduction
• Registration of Merchant Bankers
• Code of Conduct for Merchant Bankers
• General obligations and Responsibilities
• Redressal of Investor Grievances and SCORES

Chapter 4: Learn about Issue Management – Important Terms

• Understand the various terms related to Offering

Chapter 5: Issue Management – Process and Underwriting

• Issue Management
• Obligations Relating to Issues
• Pricing of Issue
• Underwriting
• Issuance Conditions and Procedures
• Minimum Subscription
• Allotment, Refund and Payment of Interest
• Post Issue Functions, Reporting and Compliance

Chapter 6: Understand Issue Management – General Obligations of Merchant Bankers and Due Diligence

• General Obligations of Merchant Bankers with regards to Issue Management
• Preferential Issue
• Qualified Institutional Placement
• Rights issue
• Indian Depository Receipts

Chapter 7: Other Merchant Banking Activities-Mergers, Acquisitions & Takeovers

• Mergers, Acquisitions & Takeovers
• SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011

Chapter 8: Other Merchant Banking Activities – Disinvestment, Buyback of Equity Shares

• Disinvestment
• Role of Merchant Banker in Buy back of Equity Shares
• Role of Merchant Banker in Delisting of Shares
• Role of Merchant Bankers in Issue and Listing of Debt Securities
• Role of Merchant Banker in Share Based Employee Benefits
• Role of Merchant Banker in cases where exit opportunity is required to be given to dissenting shareholders
• Role of Merchant Banker in Issue of Securities by SME