This study looks at merchant bankers' crucial role in the marketing and distribution of Indian equity stock markets, paying special attention to how they deal with individual investors. From the initial public offering (IPO) process to ongoing market participation and investor support, merchant bankers play a multifaceted role in ensuring the successful launch and sustained growth of equity markets. This study employs a descriptive research design and a structured questionnaire to analyze data obtained from 407 respondents in Haryana in order to determine the factors influencing the efficacy of merchant bankers. The planning of initial public offerings (IPOs) requires merchant bankers to create comprehensive prospectuses that clearly explain investment opportunities to retail investors and adhere to regulatory requirements. They also play a crucial role in pricing strategies. Beyond initial public offerings (IPOs), they continue to analyze the market, educate investors, and offer assistance to keep them confident and involved in the equity market. The study emphasizes how critical these initiatives are to reducing market volatility and promoting a sound, long-term investing culture. The study uses exploratory factor analysis (EFA) to identify three main constructs: safety and incentives, expansion strategies, and investor trust that influence the roles of merchant bankers. Specific measures were assessed for factor loadings, eigenvalues, variance explained, and reliability (Cronbach's alpha) for each construct. High factor loadings for Investor's Trust show how important it is to work with banks and NBFCs in partnership, to implement risk mitigation plans, and to provide investors with individualized portfolio management in order to win their trust. Targeting new investors in smaller cities, encouraging stock sales for portfolio management, and guaranteeing the security of demat accounts to prevent fraud are all important, as the expansion strategies construct makes clear. Safety and Incentives emphasize the need of using expert analytics, adhering to SEBI regulations, and offering incentives like lowered brokerage costs to promote market participation.The data analysis shows that risk management procedures and strategic alliances greatly increase investor trust. This paper offers insightful analysis of the intricate interactions that occur between retail investors and merchant bankers, with useful takeaways for enhancing market participation and promoting a positive investment climate.