1. A merchant banker in the conduct of his business shall observe high standards of


integrity and fairness in all his dealings with his clients and other merchant bankers.

2. A merchant banker shall render at all times high standards of service, exercise due diligence, ensure proper care and exercise independent professional judgement. He shall wherever necessary, disclose to the clients, possible sources of conflict of duties and interests, while providing unbiased services.
3. A merchant banker shall not make any statement or become privy to any act, practice or unfair competition, which is likely to be harmful to the interests of other merchant bankers or is likely to place such other merchant bankers in a disadvantageous position in relation to the merchant banker, while competing for or executing any assignment.
4. A merchant banker shall not make any exaggerated statement, whether oral or written, to the client either about the qualification or the capability to render certain services or his achievements in regard to services rendered to other clients.
5. A merchant banker shall always endeavour to -
1. render the best possible advice to the clients having regard to the clients' needs and the environments and his own professional skill; and
2. ensure that all professional dealings are effected in a prompt, efficient and cost effective manner.
6. A merchant banker shall not -
1. divulge to other clients, press or any other party any confidential information about his client, which has come to his knowledge; and
2. deal in securities of any client company without making disclosure to the Board as required under the regulations and also to the Board of Directors of the client company.
7. A merchant banker shall endeavour to ensure that -
1. the investors are provided with true and adequate information without making any misguiding or exaggerated claims and are made aware of attendant risks before any investment decision is taken by them;
2. copies of prospectus, memorandum and related literature are made available to the investors;
3. adequate steps are taken for fair allotment of securities and refund of application money without delay; and
4. complaints from investors are adequately dealt with.
8. The merchant bankers shall not generally and particularly in respect of issue of any securities be party to -
1. creation of false market;
2. price rigging or manipulation;
3. passing of price sensitive information to brokers, members of the stock exchanges and other players in the capital market or take any other action which is unethical or unfair to the investors.
9. A merchant banker shall abide by the provisions of the Act, rules and regulations and which may be applicable and relevant to the activities carried on by the merchant banker.

F. NO. 20/15/SE/92