Merchant banker may be in the form of bank, company and proprietary. This video explains in brief about merchant bankers, their functions, their regulators. The functions of merchant bankers start from project appraisal and end at mobilization of funds. One of the most significant business events in the last decade is the restructuring of american corporations. A merchant bank is a firm or financial institution that invests equity capital. This study helps to understand the prime objective, functions, role in the market and recent development in merchant banking. The objective of this article is to lay the groundwork for a theory of merchant banking. It includes underwriting of shares for public issues and listing of shares in the stock exchange. Pdf the objective of this article is to lay the groundwork for a theory of merchant banking. Merchant banking provides share ownership instead of loans. When regulations were found inadequate, they were changed or discarded for a new regulatory structure. What is merchant banking types, classification functions. Merchant banking and financial services pondicherry university. To study the rules and regulations of sebi for merchant bankers as issue.
To examine financial services management as an important and contemporary area. The merchant banking aims at providing financial capital to companies. To examine the role of merchant banking in promoting capital market in india. Commercial banks can undertake some of the merchant banking activities like. Merchant banking provides not only financial services but also guides them to move on right path with the help of rules given by sebi. These functions are initiated by lic, gic, and uti. In addition to this, leasing service is also initiated in the year 1970. Discuss the objectives of securities contract regulation act sera, 1956.
Large brokers, mutual funds, venture capital companies and investment banks offer merchant banking services. Merchant bank learn about the functions of merchant banks. To position a bank in terms of the progress made by it in the direction of universal banking. Merchant banker is, therefore, dedicated to achieve this objective. These merchant banks also give guidance on corporate affairs upon lending the money. The present regulatory system developed as the result of a series of experiments. Traditional merchant banks primarily perform international financing and underwriting activities. Before publishing your article on this site, please read the following pages. The main objectives of merchant banking are as follows.
The objectives of the research are the following 1. To critically examine the existing debate on universal banking in the context of the samples studied. In the initial years, the sbis objective was to render corporate advice and assistance to small and medium entrepreneurs. One of the most significant business events in the. Objectives and scope of the study without a sound and effective banking system in india it cannot have a healthy economy. In uk, the term merchant banking originated from merchants in london who started financing of foreign trade through acceptance of bills. A merchant bank is nothing but a financial institution also referred to as an investment bank. 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. Interestingly, the term merchant bank was the british term used to describe investment banks.
The banking system of india should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors 18. Merchant banker is, therefore, dedicated to achieve this objective through his. One of the most significant business events in the last decade is the. After sometimes, the merchants began to help governments of underdeveloped countries in raising longterm funds through floating of bonds in the london money market. Merchant banking in india 1 introduction the term merchant.