Analysis of Merchant Banking in India: A Project Report On
Analysis of Merchant Banking in India: A Project Report On
INTRODUCTION
Original Definition: A Merchant Bank is a British term for a bank providing various financial services such as accepting bills arising out of trade, providing advice on acquisitions, mergers, foreign exchange, underwriting new issues, and portfolio management. The Focus Definition: A Merchant Bank can be generally described as a financial services company with a private equity investment arm offering investment banking and ancillary services as well. Because a merchant bank acts not only as an advisor and broker but also as a principal, a merchant bank has a longer term approach than a typical investment bank and is highly concerned with the viability of each investment opportunity and providing the right advice for a strong partnership with each client company. In banking, a merchant bank is a traditional term for an Investment Bank. It can also be used to describe the private equity activities of banking. This article is about the history of banking as developed by merchants, from the Middle Ages onwards. Amidst the swift changes sweeping the financial world, Merchant Banking has emerged as an indispensable financial advisory package. Merchant banking is a service-oriented function that transfers capital from those who own to those who can use it. They try to identify the needs of the investors & corporate sector & advice entrepreneurs what to do to be successful. The merchant banking has been defined as to what a merchant banker does. A merchant Banker has been defined by Securities Exchange Board Of India (Merchant Banker) rules, 1992, as Any person who is engaged in the business of issue management either by making arrangements regarding selling, buying or
subscribing to securities or acting as manager, consultant, advisor or rendering corporate advisory services in relation to such issue managemen
The Jews could not hold land in Italy, so they entered the great trading piazzas and halls of Lombardy, along side the local traders, and set up their benches to trade in crops. They had one great advantage over the locals. Christians were strictly forbidden the sin of usury. The Jewish newcomers, on the other hand, could lend to farmers against crops in the field, a high-risk loan at what would have been considered usurious rates by the Church, but did not bind the Jews. In this way they could secure the grain sale rights against the eventual harvest. They then began to advance against the delivery of grain shipped to distant ports. In both cases they made their profit from the present discount against the future price. This two-handed trade was time consuming and soon there arose a class of merchants, who were trading grain debt instead of grain.
-Because they are private, do not take money from the public and are international in scope, they are not regulated. -Anyone considering dealing with any merchant bank should investigate the bank and its managers before seeking their help. -The reason that businesses should develop a working relationship with a merchant bank is that they have more money than venture capitalists. Their advice tends to be more pragmatic than venture capitalists.
To compare the public & private sector company engaged in providing merchant banking services on various grounds. To find out the growth potential of the Merchant Banking public & private sector companies.
QUESTIONNAIRE
Name: _____________________________________________ Address: _____________________________________________ Gender: Male ____ Age: __________ Female_____
Yes [
No [
If you know then go to section A If you dont know then go to section B SECTION-A
[1] Do you know about the services provided by merchant banking?
Yes
No [
Yes
No [
[3] Are you satisfied with the services provided by your bank? Yes [ ] No [ ]
Yes
sector?
No [
[5] What is the position of merchant banking in private/public Good [ ] Average [ ] Bad [ ]
[7] Will it differ from investment banks to the merchant bank? Yes [ ] No [ ] SECTION-B
[1] Are you interested in knowing about the merchant banking?
Yes
No [
[2] If yes, then are you interested in taking any services from merchant bank?
Yes
No [