According to SEBI:- any person who is engaged in the businessof issue management either by making arrangement regardingselling, buying or subscribing as manager, consultant advisor orrendering corporate advisory services in relation to such issuemanagement.
In 1967 first formal merchant bank was established :Grindlays bank.
In 1972 first Indian bank start to merchant banking (SBI).
Foreign exchange regulation act 1973.
Liberalization of economy in 1991-92.
In mid 90s SEBI formulated regulations (issue of shares).