merchant banking
TRANSCRIPT
Merchant banks are : . private financial institution
primary sources of income is : . international trade
secondary sources of income are : , Consulting Mergers & Acquisitions
help and .financial market speculation
they take far greater risks .than traditional banks
They do not take money from the public,
They are international , in scope So …
[ [ Anyone considering dealing with any merchant bank should investigate the Anyone considering dealing with any merchant bank should investigate the
.bank and its managers before seeking their help .bank and its managers before seeking their help ] ]
FACTS ABOUT Merchant banks..
Merchant banks in India . . .
Started in 1967 by Grindlays Bank. after that other foreign banks like Citibank and
Chartered Bank started these services in India . In mid 1970 there was a boom in the capital market
with the introduction of Foreign exchange regulation Act (FERA 1973 ) which created an awareness in the investing public about the capital market .
Also encouraged a few commercial banks and financial institution to set up a merchant banking division .
FOREIGN FOREIGN BANKSBANKS
INDIAN INDIAN BANKSBANKS
MERCHANT BANKING DIVISIONSMERCHANT BANKING DIVISIONS
FINANCIAL FINANCIAL INSTITUTIONSINSTITUTIONS
PRIVATE PRIVATE MERCHANT MERCHANT
BANKERSBANKERS
FOREIGN BANKS:
GRINDLAYS BANK, CITIBANK , CHARTERED BANK AND HONK KONG BANK.
INDIAN BANK :
STATE BANK OF INDIA FIRST, THEN BANK OF INDIA, CENTRAL BANK OF INDIA ,
BANK OF BARODA , PUNJAB NATIONAL BANK , UCO BANK ,CANARA BANK .
PRIVATE MERCHANT BANKERS :
J.M.FINANCIAL CONSULTANTS, CHAMPAKLAL INVESTMENTS AND FINANCIAL
CONSULTANCY,V.B. DESAI CONSULTANTS ETC.
FINANCIAL INSTITUTION:
ICICI, IRCI WHOSE MAIN CONCENTRATION AND ATTENTION IS ON
MERGERS, AMALGAMATION AND TAKEOVERS.
Services of Merchant Banks
o CORPORATE COUNSELLING
o PROJECT COUNSELLING
o LOAN SYNDICATION
o ISSUE MANAGEMENT
o UNDERWRITING OF PUBLIC ISSUE
o PORTFOLIO MANAGEMENT
o ADVISORY SERVICE RELATING TO MERGERS AND
TAKEOVERS
o OFF SHORE FINANCE
o NON-RESIDENT INVESTMENT
OBJECTIVES OF A MERCHANT BANKSOBJECTIVES OF A MERCHANT BANKS
Project formation
Diversification
Modernization
Raising Working Capital
Guidance
Implementation
Mobilizing resources
OOBBJJEECCTTIIVVEESS
FUNCTIONS OFFUNCTIONS OF MERCHANT BANKING MERCHANT BANKING
PROJECT PROJECT COUNSELLING COUNSELLING
CREDIT CREDIT SYNDICATION SYNDICATION
MANAGEMENT &MANAGEMENT &PUBLIC ISSUES PUBLIC ISSUES
CONSULTANCY TO CONSULTANCY TO SICK UNITSSICK UNITS
RESOURCE RESOURCE MOBILIZATIONMOBILIZATION
PORTFOLIO PORTFOLIO MANAGEMENT MANAGEMENT
GUIDELINES
IT IS A STATUTORILY BROGHT WITHIN THE FRAMEWORK OF SEBI.
1.ALL MERCHANT BANKERS WILL REQUIRE AUTHORISATION BY SEBI TO CARRY OUT BUSINESS.
2. SEBI CLASSIFY MERCHANT BANKERS IN 4 CATEGORY CATEGORY 1 CATEGORY-2 CATEGORY-3 CATEGORY-4