merchant banking
INTRODUCTION
A merchant banking is a financial institution primarily engaged in offering financial services and advice to company and wealthy individuals on how to use their money.
A merchant bank deal with commercial banking needs of finance, company & long term loans and stock writing. Merchant banking does not have retail offices where customer can go and access their account. A merchant bank is also called as wholesale banking.
OBJECTIVE
Main objective of merchant banking is coordinating the activities like the bankers, advertising agency, printers and underwriters etc.
Guide companies to get register there share under SEBI act.
The merchant banking determine the number of share, price of the stocks and the timing of the release of this new stock.
They also provide services to the finance housing schemes for the construction of houses and buying of land.
History and growth of Merchant Banking in India
Before 1960s there was no merchant banking in India. This system started after 1960s.
The Grind lay’s bank was the first bank which started merchant banking services. Grind lay’s bank is the largest foreign bank in the country. The main service offered by merchant banking includes the management of public issues and some aspects of financial consultancy.
After this more banks took initiative of merchant banking services. Bank like Citibank came in 1970. Merchant banking with Citibank play role in new entrepreneur and evaluation of new project. Raising funds through equity took place. Management consultancy services were started.
State bank of India started the merchant banking in 1972. Before 1972 state bank of India used to only provide funds. But after 1972 state bank of India started multi-tasking.
Commercial banks which followed state bank of India were
1. Central bank in 1977.
2.
A merchant banking is a financial institution primarily engaged in offering financial services and advice to company and wealthy individuals on how to use their money.
A merchant bank deal with commercial banking needs of finance, company & long term loans and stock writing. Merchant banking does not have retail offices where customer can go and access their account. A merchant bank is also called as wholesale banking.
OBJECTIVE
Main objective of merchant banking is coordinating the activities like the bankers, advertising agency, printers and underwriters etc.
Guide companies to get register there share under SEBI act.
The merchant banking determine the number of share, price of the stocks and the timing of the release of this new stock.
They also provide services to the finance housing schemes for the construction of houses and buying of land.
History and growth of Merchant Banking in India
Before 1960s there was no merchant banking in India. This system started after 1960s.
The Grind lay’s bank was the first bank which started merchant banking services. Grind lay’s bank is the largest foreign bank in the country. The main service offered by merchant banking includes the management of public issues and some aspects of financial consultancy.
After this more banks took initiative of merchant banking services. Bank like Citibank came in 1970. Merchant banking with Citibank play role in new entrepreneur and evaluation of new project. Raising funds through equity took place. Management consultancy services were started.
State bank of India started the merchant banking in 1972. Before 1972 state bank of India used to only provide funds. But after 1972 state bank of India started multi-tasking.
Commercial banks which followed state bank of India were
1. Central bank in 1977.
2.