Functions of Merchant Bankers: The basic function of merchant banker or investment banker is marketing of corpo rate and other

securities. In the process, he performs a number of services conc erning various aspects of marketing, viz., origination, underwriting, and distri bution, of securities. During the regime of erstwhile Controller of Capital Iss ues in India, when new issues were priced at a significant discount to their mar ket prices, the merchant banker s job was limited to ensuring press coverage and dis patching subscripttion forms to every corner of the country. Now, merchant bank ers are designing innovative instruments and perform a number of other services both for the issuing companies as well as the investors. The activities or serv ices performed by merchant bankers, in India, today include: 1. Project promotion services. 2. Project finance. 3. Management and marketing of new issues. 4. Underwriting of new issues. 5. Syndication of credit. 6. Leasing services. 7. Corporate advisory services. 8. Providing venture capital. 9. Operating mutual funds and off shore funds. 10. Investment management or portfolio management services. 11. Bought out deals. 12. Providing assistance for technical and financial collaborations and joint v entures. 13. Management of and dealing in commercial paper. 14. Investment services for non-resident Indians.