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:

What services are provided by merchant bankers?

The services provided by Merchant Bankers include:

  1. Project counseling.
  2. Market survey and forecasting.
  3. Estimating the amount of funds required.
  4. Raising funds from capital market.
  5. Raising of funds through new instruments.
  6. Bought out deals.
  7. OTC market operations.
  8. Mergers and amalgamations.

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.

What is Merchant Banking in simple words?

From Wikipedia, the free encyclopedia. Merchant banking is a combination of banking and consultancy services. It provides consultancy to its clients for financial, marketing, managerial and legal matters. Consultancy means to provide advice, guidance and service. It helps a business person to start a business.