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Merchant Bank and Its Function

bank

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Darshan Rao N Nallode
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44 views7 pages

Merchant Bank and Its Function

bank

Uploaded by

Darshan Rao N Nallode
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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MERCHANT BANK AND

ITS FUNCTION
MERCHANT BANKING
The term merchant bank refers
to a financial institution that
conducts underwriting, loan
services, financial advising, and
fundraising services for large
corporations and high-net-worth
individuals (HWNIs). ... Unlike
retail or commercial banks,
merchant banks do not provide
financial services to the general
public
FUNCTION OF
MERCHANT BANKING
Raising finance: Merchant bankers support their customers to
collect funding through debenture issuances, stocks, bank
loans, etc. Both domestic and foreign markets are filmed. The
funds generated by this strategy increasing be used to launch a
new project or company, or also to extend and modernize the
current enterprise.
Promotional activities: Merchant bankers perform the role of
industrial business promoters. They allow developers to create
innovations, define ventures, produce feasibility studies, receive
permits from public bodies, and opportunities. At times, merchant
bankers may also assist with political, technological, and joint
projects.

Brokers in stock exchanges: On behalf of the consumers, they


purchase and sell stock in the stock market. They often carry out
surveys of equities, remind consumers of the share to be
purchased, the date of purchasing, the amount of such
acquisition, and the period that these shares will be exchanged.
Project management: In the project management cycle, they
assist consumers in a variety of areas. They guide the position of
the plant, the writing of the plant study, feasibility reports, and
the project finance preparation, sources of support, policy
benefits, and concessions.

Advice on modernization and expansion: Advice on


amalgamation, mergers, partnerships, partnerships,
international alliances, market diversification, up-gradation of
technologies, joint ventures, etc.

Managing public issue: They serve as consultants on the


terminology, form, and timing of corporate securities issues and
helps them to be tailored to customers and provides the issuing
companies with transparency and versatility.
Credit syndication: They offer professional services during project
planning, loan applications required to collect short- and long-term
credit from various institutions and companies, etc.

Handling government consent for industrial projects: They complete


all formalities for their client and allow the government to extend
and modernize their businesses and launch new companies

Special assistance to entrepreneurs and small companies: They


offer guidance and resources for market prospects for start-ups and
small businesses, discounts, grants, and government policy, and
help them make the best of this opportunity open to them.
The revival of sick units: They help to restore disabled
manufacturing units. They meet with various long-term financing
institutions and the Industrial and Financial Restoration Council.

Portfolio management of sick units: They give guidance on


investment choices to customers, typically institutional investors.
They purchase and sell shares and offer fund investment services
and them.

Corporate restructuring: They help mergers acquisitions, selling


and disinvestment comprise them. Such protocols include careful
discussions, detailed planning, and delivery of various
documentation and lengthy legal formalities.

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