Skip to main content

Featured

Constraints

NOT NULL CONSTRAINT -    Ensures that a column cannot have a null value. DEFAULT CONSTRAINT -    Provides a default value for a column when none is specified  UNIQUE CONSTRAINT -   Ensures that all values in columns are different  CHECK CONSTRAINT -   Makes sure that all values in a column satisfy certain criteria  PRIMARY KEY CONSTRAINT -   Used to uniquely identify a row in the table  FOREIGN KEY CONSTRAINT -   Used to ensure referential integrity of the data  Primary Key - is used uniquely to identify each row in a table . It can consist of one or more columns on a table . When Multiple columns are used on a table it is called composite key.  Foreign Key - Foreign key is a column or columns that references a column most often primary key of another table . The purpose of foreign key is to maintain referential integrity of the data. Pg admin  Data base - training - right click on training - query click  Always add semi colen to run the query  Int - integer  varchar - variable charact

Merchant banking and Burn rate

 4 Conditions SBI Grant -

1.On payment of the registration fee.

2. On condition that the merchant banker would redress investor grievances within 1 month of investor complaint and would inform SEBI of all such complaints received .

3. Only if the application has the necessary infrastructure and manpower to carry ot the function as merchant banker .

4. A minimum of 2 persons who have the experience to conduct the business of merchant banking should be under the employment of the applicant.

Categories -

Category 1 - Can carry on all activities relating to management of issues such as preparation of prospectus , determining financial structure , conduct of market surveys , raising funds form capital market , raising funds through new instruments , arranging bought out deals and to provide advice on mergers and amalgamation , loan syndication , technology tie ups , working capital finance , VC , Lease finance etc.

Category 2 -To act as advisor , consultant , co - manager , underwriter and portfolio manager 

Category 3 - To act as a underwriter , advisor and consultant to issue 

Category 4 - To act as an advisor or consultant to an issue.


Summary of Categories 

  • Category 1 - 1. Issue management 
2.Advisor 
3.Consultant 
4.Manager 
5.Underwriter 
6.Portfolio manager 

  • Category 2 -1.Advisor 
2.Consultant 
3.Manager 
4.Underwriter
5.Co-manager 

  • Category 3 - 1. Underwriter 
2.Advisor 
3.Consultant 

  • Category 4 - 1. Advisor 
2.Consultant



Application for Grant of certificate -
  • An application for grant of a certificate needs to be made to SEBI.
  • The following application can be made for any one of the following categories 
-Category1 
-Category 2 
-Category 3 
-Category 4
  • For underwriter or portfolio manager a separate certificate of registration needs to be obtained from SEBI.

Consideration of Application contd 
  • The applicant must fulfil the capital adequacy requirements as follow -
1. The capital adequacy requirement should not be less than the net worth of the person making the application for grant of registration .
2.The net worth shall be as follows -
Category - Minimum Amount 
Category 1- 50000000
Category 2- 5000000
Category 3 - 2000000
Category 4 - Nil



 New topic 

Burn Rate - Amount of money cash left to survive in the market .Till burn rate we have positive cash flow. 


Comments

Popular Posts