NISM Series IX : Merchant Banking Certification Examination
NISM Series 9 : Merchant Banking Mock Test
Frequently Asked Questions about NISM 9 Merchant banking Exam
Who can take NISM Series IX : Merchant Banking Certification Examination?
Employees working with SEBI registered Merchant Bankers, who
- perform SEBI regulated activities such as initial public offer, further public offer, Open Offer, Buy-back, Delisting;
- deal with the issuers in connection with activities mentioned in (a) above;
- deal with intermediaries associated with activities mentioned in (a) above;
- act as designated Compliance Officer dealing with the activities mentioned in (a) above;
- submit Due Diligence Certificates to SEBI in connection with the activities mentioned in (a) above;
How can I register for NISM Series IX: Merchant Banking Certification Examination?
Candidates can register with National Institute of Securities Markets (NISM) at https://certifications.nism.ac.in/nismaol/
After successful registration, candidates may select a test centre, date and time slot of their choice on the link provided above
What is the fees & assessment structure for nism merchant banking exam ?
| Fees | Rs 1500 |
| Total Questions | 100 |
| Total Marks | 100 |
| Negative Mark | 25% |
| Passing Score | 60% |
| Certificate validity | 3 years |
Where can I get Merchant Banking Exam Study Material ?
Click here for Merchant Banking Study Material.
How can I appear for NISM-Series-IX: Merchant Banking Certification Examination Mock test? Where do I get sample questions for NISM Merchant Banking Exam?
Syllabus Outline with Weightages : NISM 9 - Merchant Banking Certification
| Chapter | Chapter name | Weightages (Syllabus wise question %) |
|---|---|---|
| 1 | Introduction to the Capital Market | 7% |
| 2 | Introduction to the Merchant Banking | 15% |
| 3 | Registration, Code of Conduct & General Obligations of Merchant Bankers in India | 15% |
| 4 | Issue Management – Important Terms | 5% |
| 5 | Issue Management – Process and Underwriting | 18% |
| 6 | Issue Management – General Obligations of Merchant Bankers and Due Diligence | 15% |
| 7 | Other Merchant Banking Activities - Mergers, Acquisitions & Takeovers | 15% |
| 8 | Other Merchant Banking Activities - Disinvestment, Buyback of Equity Shares | 10% |
Curriculum : NISM IX - Merchant Banking Certification
I. Introduction to the Indian Capital Market
- Understand the Capital market structure in India and the role of capital market in the economy.
- Know the different Products in the Indian Market for example Equity, Debt and Derivatives.
- Know the different Participants in the Indian Capital Market for example Issuers, Investors and Intermediaries.
- Know the Regulators and the Regulatory Framework of the Indian securities market in India.
II. Introduction to the Merchant Banking
- Understand the Concept and Evolution of Merchant Banking
- Highlight the difference between merchant banking and commercial banking.
- List the difference between Merchant Banking and Investment Banking
- Know the evolution of International merchant banking scenario.
- Know the Glass-Steagall Act in brief and its repeal.
- Understand the merchant banking in Indian context.
- Know the different Regulations governing Merchant Banking Activity in India
III. Registration, Code of Conduct & General Obligations of Merchant Bankers in India
- Highlight the various activities undertaken by the merchant bankers in India.
- Know the definition of a merchant banker
- Know who can be registered as a merchant banker?
- Understand the eligibility criteria for registering as a Merchant Banker
- Know the Registration Procedure, Renewal Fees and Validity
- Understand the conditions of Registration
- Know the registration requirements of Merchant Bankers as Underwriters
- Understand the Code of Conduct prescribed for Merchant Bankers
- Understand the General Obligations and Responsibilities to be followed by the Merchant Bankers with regards to the following:
- Follow the code of Conduct Maintain books of accounts, records etc Submission of half-yearly results Responsibilities of lead managers
- Lead merchant banker not to associate with any Merchant Banker which is not holding
- SEBI registration Underwriting Obligations Acquisition of shares prohibited Information to SEBI Disclosures to SEBI Appointment of compliance Officer
- Learn about the Investor Grievance redressal and SCOREs.
IV. Issue Management – Important Terms
- Public Offering Initial Public Offer
- Further Public Offer
- Offer for Sale
- FPO IPP QIP / Preferential Allotment Offer for sale through Stock Exchange Mechanism Offer Document
- Draft Red Herring Prospectus, Red Herring Prospectus, Book Building Process, Fixed Price Issue, Differential Pricing, Fast Track Issue
- Green Shoe Option ,Safety Net, ASBA, Soft and Hard Underwriting ,Open and Closed Book, Basis of Allocation
- Categories of Investors
- Retail Individual Investors (RIIs)
- Non Institutional Investors (NIIs)
- Qualified Institutional Investors (QIBs)
- Anchor Investors Designated Stock Exchange Employee Specified Securities
V. Issue Management-Process and Underwriting
- Understand the process of issue management and know the merchant banker’s role in it.
- Learn about the appointment of SEBI registered Intermediaries and other intermediaries
- Learn about the process of filing of offer document by the issuer with SEBI and the ROC with the help of the lead Merchant Banker
- List the documents to be submitted before opening of the Issue, Copy of agreement between the Issuer and Merchant Banker, Certificate of compliance stating compliance of conditions, Due diligence certificate while registering DRHP/ Red Herring Prospectus/ prospectus with the ROC/ final post issue report
- Learn about the type of In-Principle approval from recognized stock exchanges for initial public issues as well as in the case for rights and further public offerings.
- Draft Offer Document to be made Public
- Opening of an issue
- Dispatch of Issue Material and distribution
- Understand how the issuer determines the price of the security in consultation with the Lead Merchant Banker
- Know the role of merchant banker in underwriting of an issue
- Learn about the minimum subscription
- Know how the allotment, refund and payment of interest is done
VI. Issue Management- General Obligations of Merchant Bankers and Due Diligence
- Understand the general obligations of Intermediaries with respect to Public Issues and Rights Issue
- Know about the Pricing in Preferential Issue
- Know the Pricing and restrictions on allotment of Qualified Institutional Placement
- Know the Pre-issue advertisement for rights issue utilization of funds raised through rights issue and the manner of disclosures in the offer document.
- Understand the procedure for Institutional Placement Programme w.r.t Offer Document Pricing and allocation/allotment Restrictions, Minimum number of allottees Restrictions on size of the offer Period of subscription and display of demand Transferability of eligible securities
- Understand the procedure for issue of Indian Depository Receipts (IDRs) w.r.t Eligibility Conditions for issue of IDR, Minimum Subscription Filing of Draft Prospectus, Due diligence Certificate, Payment of Fees and Issue of advertisements for IDR Post Issue Reports Undersubscribed Issue Finalisation of basis of allotment
- Learn about the importance of Due Diligence, the role of external parties in the due diligence process
- List the due diligence documents
VII. Other Merchant Banking Activities - Mergers, Acquisitions & Takeovers
- Understand the difference between Mergers , Acquisitions and Takeover
- Know the role of Merchant Banker in M&A and Takeovers
- Understand the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 w.r.t Substantial acquisition of shares or voting rights Voluntary Offer Offer Size Offer Price Payment Mode Exemptions Process of Open Offer
VIII. Other Merchant Banking Activities - Disinvestment, Buyback of Equity Shares
- Understand the Role of Merchant Banker in Disinvestment process
- Know the Role and Obligations of Merchant Banker in Buyback of Equity Shares
- Understand the Role of Merchant Banker in Delisting of Shares
- Understand the Role of Merchant Banker Issue and Listing of Debt Securities
- Know the Role of Merchant Banker in ESOPs