INTRODUCTION
Financial services are an important component of financial system. Thesmooth functioning of financial system depends upon the range of financialservices extended by the providers. Financial services in India havewitnessed remarkable changes in the recent past after the implementation of
“Liberalization, privatization and globalization”
.Funds are tapped from the capital market to finance various mega industrial projects. In attracting public savings, merchant bankers play a vital role asspecialized agencies. The resources raising functions remains to be the primary business of a merchant banker. The primary market holds the key torapid capital formation, growth in industrial productions and exports. Therehas to be accountability to the end use of funds raised from the market. Theincrease in the number of issues and amount raised the number of merchant bankers. Therefore, the field became highly competitive market where itrequires a specialized skill in handling the situation. The merchant bankershave a social responsibility to in building an industrial structure in India.
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Merchant bankers assist corporate in raising capital. They assist in issue of Shares, syndicating loans, public issue of debentures. They do not providefunds.They only assist. They also actively arrange working capital, appraisalProjects scrutinize & persuade merger proposals. In BRITAIN merchant bankers & investment bankers are synonymous. In the U.S
., Merchant bank means as investment bank which is well-equipped to handle multinational corporations. In INDIA merchant bankers is a body corporate who carries on any activityof the issue management, which consist of preparing prospectus & other information relating to the issue. Merchant banks in India are not allowed toconduct any business other than that related to securities market. There is noofficial category in investment banking.
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Merchant Banking In India
· Merchant