What is merchant banking and its functions?

What is merchant banking and its functions?

Merchant Banking is a combination of Banking and consultancy services. It provides consultancy to its clients for financial, marketing, managerial and legal matters. It helps to raise (collect) finance. It helps to expand and modernize the business. It helps in restructuring of a business.

What is the procedure for getting registration as a merchant banker?

For registration, the Merchant Banker, applying as 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. The application can be made through an online process through the SEBI route.

What are the services of merchant banks?

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.

What is merchant banking with example?

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). Some of the largest merchant banks in the world include J.P. Morgan Chase, Goldman Sachs, and Citigroup.

What is an example of a merchant?

A person whose business is buying and selling goods for profit; trader, esp. Merchant is defined as a person or company engaged in the business of selling or trading goods. A wholesaler is an example of a merchant. A retail store owner is an example of a merchant.

Can an individual be a merchant banker?

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 is the importance of merchant banking?

The important functions of merchant banking are discussed below: Raising funds for clients: Merchant banking helps clients raise funds by issuing shares, debentures and bank loans. This helps clients raise funds both in the domestic as well as the international market.

What is a merchant job description?

Function. Merchants purchase and sell goods in bulk that are purchased by end consumers or retail stores. In addition to storing goods, merchants also engage in some marketing, order processing, customer service and technical assistance.

Can a CA give valuation certificate?

23/2018 dated 24th May, 2018 it is provided that now only merchant banker can do valuation of unquoted equity shares under Discounted Free Cash Flow method and Chartered Accountants are no more allowed to do the same.