NISM Series IXSEBI mandatoryTier A
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.
IntermediateDifficulty
Suggested prep: 20-30 days
25%Negative marking
Avoid blind guessing.
3 yearsValidity
Computer-Based Test (CBT)
Rank 8Priority
Operations track
01Overview
What this certification is really testing.
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
02Syllabus
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.
Chapter weightage
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%03Key concepts
Concepts and formulas to keep handy.
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)
04Study plan
A clear way to study this module.
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
05Common mistakes
The pass mark is simple. The paper is not.
Scoring warning
Because this paper has negative marking, precision matters more than speed. Attempt the sure questions first, then return to calculations and close-call options.
Ready to register?
Book your slot on the official NISM portal. Confirm the current fee and exam pattern there before you pay.
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