Working Of Merchant Banking :
Content:
1. Introduction Of Merchant Banking
2. Function of Merchant Banking
2.1 Key Function Of Merchant Banking
3. Objective Of Merchant Banking
4. Merchant banking and private equity
5. important functions of merchant banking
Merchant banking is defined as “ any person who is engaged in the business of issue management either by making arrangements regarding selling, buying or subscribing to securities as a manager, consultant, advisor or rendering corporate advisory services in relation to such issue management.”
The basic Merchant banking services like checking accounts, etc.
2. The function of Merchant Banking
Merchant banks help to process loan applications for short and long-term credit from financial institutions. They provide these services by estimating total costs involved, developing a financial plan for the entire project, as well as adopting a loan application for commercial lenders.
- Underwriting of shares and debentures.
- Management of Public issues.
- Portfolio management.
- Credit syndication which involves all the steps of applying for a loan.
- Corporate Advisory services.
- Management of offshore funds.
- Leasing and financing.
- Ability to analyze.
- Abundant knowledge.
- Ability to built up a relationship.
- Innovative approach.
- Integrity.
Merchant banks cover both domestic and international markets to raise funds, whereas Private equity firms invest their own investor's money. Private equities buy a company, increases its value, and sell it to gain profit. Merchant banks invest in different aspects of the market for benefit.
5. The important functions of merchant banking
Raising funds for clients: Merchant banking helps clients raise funds by issuing shares, debentures, and bank loans.
This helps clients raise funds both in the domestic as well as international market.
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