A merchant bank now takes up the following functions:
- Promotional Activities:
- Issue Management:
- Credit Syndication:
- Portfolio Management:
- Leasing and Finance:
- Servicing of Issues:
- Other Specialised Services:
Merchant Banking: Meaning and Functions of Merchant Banking
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What are the functions of Merchant Bank?
The functions of merchant banking are listed as follows: Raising Finance for Clients : Merchant Banking helps its clients to raise finance through issue of shares, debentures, bank loans, etc. It helps its clients to raise finance from the domestic and international market.
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:
What is meant by merchant banking?
A merchant bank is a company that conducts underwriting, loan services, financial advising, and fundraising services for large corporations and high net worth individuals. Unlike retail or commercial banks, merchant banks do not provide services to the general public.
What services are provided by merchant bankers?
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.