17310044-Merchant-Banking - Merchant Banking Merchant...

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Merchant Banking
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Merchant Banking-An Overview Companies raise capital by issuing  securities in the market. Merchant bankers  act as intermediaries between the issuers  of capital and the ultimate investors who  purchase these securities.
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Merchant banking…  is the financial  intermediation that matches the entities that  need capital and those that have capital. It is  a function that facilitates the low of capital in  the market.  Ministry of Finance: “Any person who is  engaged in the business of issue  management either by making arrangements  regarding selling, buying or subscribing to  securities as manager, consultant, advisor or  rendering corporate advisory service in  relation to such issue management”
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Banking commission Report-1972 a) Necessity b) Distinct from commercial Banks c) Investment Management and Advisory  services d) Medium and small savers e) Manage
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Merchant Banking in India Grindlays Banks-1967 Management of capital issue Production planning, system design to market  research Management consultancy Citibank-1970 SBI-1972
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Services rendered Organising finance for investment in  projects Assistance in financial management Acceptance of house business Raising Eurodollar loans and issue of  foreign currency bonds Financing export of capital goods,  hydropower Financing of hire-purchase transaction,  leasing
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Regulation Merchant Bankers Regulations of  Securities and Exchange Board of India Company Act 1956 Listing guidelines of Stock Exchanges Securities Contracts (Regulation) Act,  1956 Formation of divisions Subsidiaries companies
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Structure Category-I to carry on any activity of the issue  management, which will inter-alia consist of 
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This note was uploaded on 05/20/2010 for the course DOF AAf001-6 taught by Professor Changchungdo during the Spring '10 term at 카이스트, 한국과학기술원.

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17310044-Merchant-Banking - Merchant Banking Merchant...

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