Certain activities within the merchant bank also require financial or legal licenses.
Most jobs in merchant banking require at least a bachelor’s or master’s degree in business or finance, plus the licenses required for the specific function.
Are merchant banks regulated?
Regulation of Merchant banking. 2. Introduction : “ A merchant bank is a financial institution providing capital to companies in the form of share ownership instead of loans. SEBI has classified the merchant bankers into four categories based on the nature and range of the activities and responsibilities.
What is the role of a merchant bank?
Facilitate primary market activities by their advice and guidance. Merchant bankers are in charge of the issue process. They act as intermediaries between the company and the investors. They are also responsible for preparing the prospectus and marketing the issue.
What are the types of merchant banking?
Merchant Banking Regulations:
- Category I Merchant Bankers: These merchant bankers can act as issue manager, advisor, consultant, underwriter and portfolio manager.
- Category II Merchant Bankers:
- Category III Merchant Bankers:
- Category IV Merchant Bankers:
How do merchant banks make money?
Making money: A commercial bank makes money by offering loans and earning interest. It also earns money by charging fees for checking accounts, ATM charges, charges on overdrafts, etc. On the other hand, a merchant bank makes money via fees they charge their big clients for providing financial services & consultation.