Home › JAIIB › IE&IFS › Unit 35

JAIIB · Indian Economy & Indian Financial System · Module D — Financial Products and Services

JAIIB IE&IFS Unit 35 — Merchant Banking Services: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 1 of the November 2026 cycle (1 November 2026)

This page is a free slice of our JAIIB IE&IFS question bank for Unit 35 — Merchant Banking Services (Module D — Financial Products and Services). The Mock Centre holds 67 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

IE&IFS · Module D67 MCQs in the Mock Centre5 free belowPaper on 1 November 2026

Key facts examiners test from this unit

  1. Merchant banking = issue management + advisory for corporates/HNIs; origins Italy & France; London entry via bill acceptance; SEBI-regulated (NOT RBI); fee-based; equity-side; management-oriented.
  2. Indian timeline: Managing Agency Houses pre-1956 → Grindlays 1967 (first licence) → Citibank 1970 → SBI 1972 (Banking Commission) → ICICI 1973 (first DFI) → 1983-84 boom → BR Act amendment (mid-80s) → IFCI 1986 → IDBI 1991.
  3. Four SEBI registrations: merchant banker, banker to the issue (ASBA/escrow branches), debenture trustee (issues >18 months; via subsidiary trust only), portfolio manager (SEBI PM Regulations 1993).

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
Per the Ministry of Finance notification, a Merchant Banker is engaged in:
Why (b): Per the Ministry of Finance notification, a Merchant Banker is engaged in ISSUE MANAGEMENT — the statutory definition's centre.
Question 2 of 5
NOT true about Merchant Banks:
Why (b): NOT true about merchant banks: 'regulated by RBI' — SEBI is their regulator, full stop.
Question 3 of 5
Project counseling, capital structuring, amalgamations and takeovers typify:
Why (b): Project counseling, capital structuring, amalgamations and takeovers typify MERCHANT BANKS — the advisory menu.
Question 4 of 5
Category I Merchant Banker's minimum net worth:
Why (b): Category I merchant banker's minimum net worth: ₹5,00,00,000 — five crore capital adequacy.
Question 5 of 5
Issue Management divides into:
Why (b): Issue Management divides into PRE-ISSUE AND POST-ISSUE functions — the before/after split.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
SEBIRBIMerchant banks' regulator vs the decoy
Grindlays 1967Citibank 1970First vs second licensees
Practise all 67 questions on Unit 35. The free demo opens a slice of every subject with the same explanations; the IE&IFS Online-only pass unlocks all 3,032 IE&IFS questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
Take the free test Open the free demo

← Unit 34: Interconnectedness of Markets and Market Dynamics · Unit 36: Derivatives Market → · All IE&IFS units · JAIIB 2026 guide

Related reading

Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.