What are the functions of a merchant banker?

What are the functions of a merchant banker?

Functions of Merchant Bankers

  • The basic function of merchant banker or investment banker is marketing of corporate and other securities.
  • Project promotion services.
  • Project finance.
  • Management and marketing of new issues.
  • Underwriting of new issues.
  • Syndication of credit.
  • Leasing services.
  • Corporate advisory services.

What are the function of merchant bankers in India?

Promotional activities In India, Activities of Merchant Banker play a very vital role of promoter of industrial enterprises. They assist entrepreneurs in the matter of conceiving ideas, identifying projects, preparation of feasibility reports, getting Government approvals as well as incentives, etc.

What is Merchant Banking in simple words?

The term merchant bank refers to a financial institution that conducts underwriting, loan services, financial advising, and fundraising services for large corporations and high-net-worth individuals (HWNIs). Unlike retail or commercial banks, merchant banks do not provide financial services to the general public.

What are the services provided by merchant bankers?

The services provided by Merchant Bankers include:

  • Project counseling.
  • Market survey and forecasting.
  • Estimating the amount of funds required.
  • Raising funds from capital market.
  • Raising of funds through new instruments.
  • Bought out deals.
  • OTC market operations.
  • Mergers and amalgamations.

How do I get into merchant banking?

To be a merchant banker, an applicant is required to pay a non-refundable application fee of Rs 50,000 by way of demand draft drawn in favour of ‘Securities and Exchange Board of India’, payable at Mumbai. Such an applicant is required to have a minimum net worth of not less than Rs 5 crore.

What are the characteristics of merchant banking?

Characteristics of Merchant Banking:

  • The high proportion of decision-makers as a percentage of total staff.
  • Quick decision process.
  • The high density of information.
  • Intense contact with the environment.
  • Loose organizational structure.
  • A concentration of short and medium-term engagements.

What is merchant banking and its types?

Merchant banking means the activity of rendering a number of services including Management of securities, Portfolio management, Underwriting and Insurance, Financial advice and project counseling etc. Large brokers, Mutual Funds, Venture capital companies and Investment Banks offer Merchant-Banking services.

What are the major qualities of banker?

“A banker needs to have good judgment, service orientation and the ability to cope well under stressful circumstances. Organizational skills, time management and a strong work ethic are also essential for this job.”

What is merchant banking its scope and functions?

Merchant banks act as an intermediary/ middleman between business corporates and investors. In other words, merchant banking is financial intermediation between the business entities which require funds and the investors who possess ready capital and seeking an opportunity for investment so that they can make a return.

Characteristics of Merchant Banking: The high proportion of decision-makers as a percentage of total staff. Quick decision process. The high density of information. Intense contact with the environment.

Who are merchant banks and what do they do?

“Merchant Banking refers to the financial intermediary services provided by specialised banks called Merchant Bank (other than commercial banks) for business corporates and individual with high net worth.” Merchant banks act as an intermediary/ middleman between business corporates and investors.

Which is the first merchant bank in India?

In India merchant banking services were started only in 1967 by National Grindlays Bank followed by Citi Bank in 1970. The State Bank of India was the first Indian Commercial Bank having set up separate Merchant Banking Division in 1972.

How does merchant banking help in leasing services?

Leasing Services : Merchant bankers also help in leasing services. Lease is a contract between the lessor and lessee, whereby the lessor allows the use of his specific asset such as equipment by the lessee for a certain period. The lessor charges a fee called rentals.

Which is the oldest merchant bank in the UK?

In the United Kingdom, merchant banks started in the early 18 th century. The oldest merchant bank in the United Kingdom is Barings Bank, which was established by a German-originated family of bankers and merchants.