Merchant BankingCertification Guide.
Covers IPO/FPO issue management, book building, takeovers & mergers, corporate restructuring, and SEBI merchant banking regulations. Essential for investment banking careers in India.
Difficulty
Intermediate
Suggested prep: 20-30 days
Negative marking
25%
Avoid blind guessing.
Validity
3 years
Computer-Based Test (CBT)
Priority
Rank 8
Operations track
What this certification is really testing.
This template pulls directly from the NISM database so the article stays factual, structured, and easy to scan before you register.
Ideal for
Investment banking aspirants
Those working in IPO/FPO advisory
M&A professionals
Career paths
Investment Banker
Merchant Banking Analyst
IPO Advisory
Corporate Finance Professional
M&A Associate
Mandatory for
Employees of merchant banking firms
Persons involved in issue management activities
Study by chapter weightage, not by guesswork.
The highest scoring chapters carry 72% of the paper. Start there, then use the low-weight chapters for polish.
High-weightage focus
Issue Management IPO/FPO
18%Takeovers and Mergers
15%SEBI Regulations
15%Capital Markets Primary and Secondary
12%Due Diligence and Compliance
12%Key concepts to remember
Book building: Price discovery mechanism bidding within a price band (floor to cap)
DRHP SEBI review RHP IPO opens know the document flow
Anchor investors: Can invest up to 60% of QIB portion, 1 day before IPO opens
SEBI Takeover Code (SAST): Mandatory open offer triggered at 25% shareholding
Due diligence certificate: Merchant banker certifies all disclosures in offer document
Minimum subscription: If not achieved, IPO must refund all money within prescribed time
ASBA (Application Supported by Blocked Amount): Standard mode for IPO applications
Lock-in period: Promoters' minimum contribution locked for 3 years (18 months for excess)
A clear way to study this module.
Use the database strategy as the practical order of attack: official workbook first, high-weightage chapters next, then mocks and exam-day control.
Study strategy
Focus on Issue Management (Ch 3, 18%) and Takeovers (Ch 5, 15%) they carry 33% combined
Know the complete IPO process from DRHP to listing step by step
SEBI SAST (Takeover Code) triggers and open offer mechanics are heavily tested
SEBI Merchant Banking regulations registration, responsibilities, penalties
Due diligence and compliance processes understand the role of various intermediaries
Exam-day tips
72 seconds per question regulatory questions are recall-based, attempt first
IPO process and SAST questions are common know the numerical thresholds
0.25 negative marking be careful with regulatory clause-specific questions
Book building process questions often test the role of different investor categories
Scoring warning
The pass mark is simple. The paper is not.
Because this paper has negative marking, precision matters more than speed. Attempt the sure questions first, then return to calculations and close-call options.
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