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regulations governing merchant bankers are much better now, however, there is still scope for further improvement. Thus a few problems and hurdles faced by Merchant Bankers are: Restriction of Merchant Banking activities: SEBI guidelines have authorized merchant bankers to undertake issue related activities only and as such have made them restrict their activities. Minimum net worth of Rs. 5 Crore: SEBI (Merchant Bankers) Regulations, 1992 mandates a minimum net worth of Rs. 5 crore for authorization of merchant bankers. Merchant Bankers Commission: A Merchant Banker can charge only 0.5% as the maximum commission for whole of the issue.