PROBLEMS AND HURDLES Though with the recent amendments to the SEBI (Merchant Bankers) Regulations, 1992, the

regulations governing merchant bankers are much better now, however, there is still scope for further improvement. Thus a few problems and hurdles faced by Merchant Bankers are: Restriction of Merchant Banking activities: SEBI guidelines have authorized merchant bankers to undertake issue related activities only and as such have made them restrict their activities. Minimum net worth of Rs. 5 Crore: SEBI (Merchant Bankers) Regulations, 1992 mandates a minimum net worth of Rs. 5 crore for authorization of merchant bankers. Merchant Bankers Commission: A Merchant Banker can charge only 0.5% as the maximum commission for whole of the issue.