1. You know that a merchant banker would get penalty points for gross errors that he makes in his discharge of duties. Once he collects 8 penalty points, he is suspended by SEBI from further operations in the capital market for a specific period. State at least 4 reasons as to where SEBI considers the MB as critically erring and allot penalty points.

2. You are a merchant banker as a private limited company. You have so far handled 10 issues as a lead manager. Answer the following questions in this behalf:

a. What is the maximum number of merchant bankers that can associate with a public issue?

b. MB activity is only fee based but there is an exception to this? What is this exceptional activity we are talking about especially in the case of a lead manager handling a public issue?

c. What is the cap for this activity in terms of number of times?