NISM Series III-A: Securities Intermediaries Compliance Mock Test - Free Demo

Every Merchant Banker is required to pay an initial fee of Rs. 20 lakhs as registration fees and to keep the registration in force subsequent renewal fees of Rs. 9 lakhs every three years.

Each Stock Exchange can have its own bye laws which lays down rules regarding the admission of trading members, listing requirements, fees, suspension of admission etc etc and differ from exchange to exchange, but these have to be in conformity with the provisions of the SC(R)A, 1956, SC(R)R, 1957 and the SEBI Act, 1992.

Such bye laws framed by the stock exchanges need to be approved by the SEBI.

In terms of the Prevention of Money Laundering Act (PMLA) Rules, intermediaries are required to report information relating to cash and suspicious transactions to –
Director, FIU-IND,
Financial Intelligence Unit-India,
New Delhi-110021

Depository Participant should redress the grievances of the investors within 30 days of the receipt of complaint and keep the depository informed about the number and nature of grievances redressed by it and number of grievances pending before it.

The overall process of Investor grievance redressal is monitored by the Compliance Officer.

Every certificate granted to the applicant as a Custodian shall be valid unless it is suspended or cancelled by SEBI.

The regulation 7 of the SEBI Merchant Bankers Regulations specifies the capital adequacy requirements for applicants seeking registration as Merchant Bankers. It states that applicants shall have a networth of not less than five crore rupees.

Net worth here means the paid-up capital and free reserves of the applicant at the time of making application.