Merchant Banking
A merchant bank
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What is Merchant Bank?
A Merchant bank is a bank or a financial institution which is more focusing on providing financial services and advice to corporations and wealthy individuals, so we can say that a Merchant bank is that which providing Private equity activities of banking. There are two types of banks which provides these private equity services and they are Merchant banks and Investment Banks and the main difference between these banks is merchant bank invest its own capital in a client company whereas an investment bank is act as a distributor of the securities of the company in its capital raising role. First bank that providing these services was establish on 13th November 1994 and its name was First Merchant Bank (FMB). It is a registered commercial bank that's established in Malawi Stock exchange. So, in short we can say that Merchant bank is the bank that engaged in providing the business of issue management either by making arrangements regarding selling, buying or subscribing to securities as manager , consultant, advisor or rendering corporate advisory service in relation to such issue management.
Objectives of Merchant Banking in Prevailing economy:- * To Study the role of Merchant Banking towards the development of Securities industry * To analyze and regulate the functions of issue Management regulations * To perform the function of merchant banking as per the guidelines of rules and regulations of SEBI. * To draw a conclusion and suggestions based on analysis and experiences.
Merchant Banking in India:
Merchant banking can be describe as a commercial activity that's first introduced in India by issuing management of public issue of capital and loan syndication. In 1969 ANZ Grindlays Bank introduced merchant bank services first time in India.
This free essay was written by a student and not by our expert writers. If you need custom essays on your exact essay questions, then have a look at our essay writing service.
What is Merchant Bank?
A Merchant bank is a bank or a financial institution which is more focusing on providing financial services and advice to corporations and wealthy individuals, so we can say that a Merchant bank is that which providing Private equity activities of banking. There are two types of banks which provides these private equity services and they are Merchant banks and Investment Banks and the main difference between these banks is merchant bank invest its own capital in a client company whereas an investment bank is act as a distributor of the securities of the company in its capital raising role. First bank that providing these services was establish on 13th November 1994 and its name was First Merchant Bank (FMB). It is a registered commercial bank that's established in Malawi Stock exchange. So, in short we can say that Merchant bank is the bank that engaged in providing the business of issue management either by making arrangements regarding selling, buying or subscribing to securities as manager , consultant, advisor or rendering corporate advisory service in relation to such issue management.
Objectives of Merchant Banking in Prevailing economy:- * To Study the role of Merchant Banking towards the development of Securities industry * To analyze and regulate the functions of issue Management regulations * To perform the function of merchant banking as per the guidelines of rules and regulations of SEBI. * To draw a conclusion and suggestions based on analysis and experiences.
Merchant Banking in India:
Merchant banking can be describe as a commercial activity that's first introduced in India by issuing management of public issue of capital and loan syndication. In 1969 ANZ Grindlays Bank introduced merchant bank services first time in India.