Investment Banking in India

INVESTMENT BANKING IN
INDIA
IN PARTIAL FULFILMENT OF THE
REQUIREMENTS FOR MASTERS DEGREE IN
FINANCE MANAGEMENT
2007-2010
ROLL NO. 35
LALA LAJPATRAI INSTITUTE OF MANAGEMENT,

HAJI ALI, MUMBAI.
1 |Investment Banking in India
DECLARATION
I hereby declare that this report, submitted in partial fulfillment of the requirement for the award
for the Masters of Financial Management, to Lala Lajpatrai Institute of Management is my
original work and not used anywhere for award of any degree or diploma or fellowship or for
similar titles or prizes.
I further certify that without any objection or condition I grant the rights to LLIM to publish any
part of the project if they deem fit in journals/Magazines and newspapers etc without my
permission.
Place
Date
: Mumbai
Signature
---------------------------------
PROJECT GUIDE CERTIFICATE FORM
I ASMIT NANDAJI MEJARI the undersigned Roll No. 35 studying in the Third Year of MFM
is doing my project work under the guidance of Dr./ Ms./ Mr. GANESH SHINDE wish to state
that
I have met my internal guide on the following dates mentioned below for
Guidance:-
Sr. No.
Date
Signature of the Internal Guide
Project
____________________________
__________________________
Signature of the Candidate
Signature of Internal Guide
PROJECT GUIDE CERTIFICATE FORM
This is to certify that the dissertation submitted in partial fulfillment of the requirement for the
award of MFM of the University of Mumbai is a result of the bonafide work carried out by
Miss/Mr._________________________________________________________under
my
supervision and guidance no part of this report has been submitted for award of any other degree,
diploma fellowship or other similar titles or prizes. The work has also not been published in any
scientific journals/ magazines.
Date:
Name:
Place:
Roll No.:
------------------------------
---------------------------
(Director, LLIM)
(Project Guide)
ACKNOWLEDGEMENT
I would like to thank ICICI Securities for providing us this unique opportunity of undertaking a
study on Functionality of Investment Banking. I would also like to thank Mr.Amod Bagwe &
Mr.Yogesh Solat, with whose active support and assistance I was always guided in the right
direction of my project and could achieve to complete it within the stipulated duration. It was
both, an enriching and a wonderful experience working with one of the leading and most
respected Investment Banking houses in India and I thank all the members of the organization
who have helped me during the projects duration.
I am also obliged to Mr. Ganesh Shinde, my project mentor and faculty guide at college. I thank
him for his invaluable guidance and support in the project research.
Thanking You All,

Asmit Nandaji Mejari
INDEX
SR NO.
PARTICULAR
PAGE
EXECUTIVE SUMMARY
OBJECTIVE
RESEARCH METHODOLOGY
DATA COLLECTION
10
INTRODUCTION
11
DEFINITION
12
REGISTRATION OF INVESTMENT BANK
12
GRANT OF CERTIFICATE
13
REGISTRATION CHARGES
14
10
CONDITION OF REGISTRATION
14
11
CODE OF CONDUCT
15
12
OFFERING AND SERVICES OF INVESTMENT BANK
19
13
ORGANISATION STRUCTURE
22
14
CHINESE WALL CONCEPT
27
15
CASE STUDY : ADANI POWER IPO
28
16
CASE STUDY : ICICI SECURITIES
40
17
CONCLUSION
58
18
BIBILIOGRAPHY
59
EXECUTIVE SUMMARY
The project on Investment Banking in India has been undertaken with a view to study the
overall investment banking industries in India and their products offering, services , operations ,
client management systems and other part of the industry.
In the above study, I have highlighted the key regulatory parameters regarding Investment banks
like Definition of Investment Banks, Registration of Investment Banks, Code of Conducts for
Investment Banks, Grant of Certificate, Registration Charges, Conditions of Investment Banks &
Function of Investment Banks. IPO Management is the one of the main function of Investment
Banks, so in the project I have taken Live cases like Adani Power IPO & ICICI Security as IB for
Case Study.
In ICICI Securities I had personally visited following department and find out the process of
their Role of their respective department.
1.
Mutual Fund Operations
2.
Risk Operations
3.
DBC Operations
4.
Human Resource, Legal & Compliance
5.
Product Advisory Group
6.
Equity advisory group
7.
Sales Channles
8.
Operation Control
9.
Analytics & Marketing
OBJECTIVE
The main objective of the project is to :
1.
Study the overall view of the Indian Investment Banks.
2.
Study the Regulatory Requirement for Registration of

Investment Banks.
3.
Know the Revenue (Brokerage / Commission) Generation

Pattern of the Investment Banks.
4.
Know the Pre-Issue & Post Issue Management of IPO &

Process.
RESEARCH METHODOLOGY
The research methodology used for the project report is descriptive and research is
based on the Primary and Secondary data sources. These include ADANI Power
IPO & Offline IPO Bidding Manual Published by ICICI Securities at the time of
IPO for its Various Sales Channels like Sub-Broker, Center Sales & Retail
Channel, ICICI Direct Websites, ICICI Intranet and related statistics. As far as
other information is concerned I had personally visited the department & met
concerned people in various department, they explained to me the process and
responsibilities of the team. They helped me to understand the meaning &

relevance of each parameter considered in the project.
DATA COLLECTION
The objective of this exercise is to get the overview of the Investment Banking
Structures in India. I have collected the data from following data sources.
1.
Data related to Registration, Functions, Code of Conducts of Investment

Banks taken from the SEBI Website and Investment Banking book of R
Machiraju.
10 | I n v e s t m e n t B a n k i n g i n I n d i a
2.
Raw data related to Adani Power IPO and Bidding Manual process has been
collected from the ICICI Intranet Portal.
3.
Data related to the ICICI Case studies collected from the various department
of ICICI Securities with the prior permission of department Head.
INTRODUCTION
Investment banks play a significant role in the financial services sector. However, Investment
banking, as advisory financial services, emerged rather late. Formal Investment banking service
in India originated with the setting up of the Investment banking division by the Grind lays Bank
in 1969 for undertaking management of public issue and financial consultancy, followed by other
foreign banks.
Pursuant to the recommendations of the Banking Commission (1972), State Bank of India started
Investment banking service in 1973. The ICICI Ltd was the first development finance institution
to initiate such service in 1974. The period following the mid-seventies witnessed a boom in the
growth of Investment banking organizations in the country which were sponsored by banks,
financial institutions, NBFCs Brokers and so on. This led to diversification into the scope of
these activities such as loan syndication, portfolio management, corporate counseling, project
counseling, debenture trusteeship, mergers, Amalgamations & takeovers and so on.
Investment banking is a particular form of banking which finances capital requirements of an
enterprises. Investment banking assists as it performs IPOs, private placement and bond
offerings, acts as broker and carries through mergers and acquisitions.
But the scope of such services was neither defined nor was a set of rules and regulations
governing them in place. The formation of SEBI in 1992 was a landmark in the evolution of
Investment banking as a professional service in the country. Investment banking organizations
have to be mandatorily registered with SEBI. While Investment bankers are currently providing a
variety of services, registration with SEBI is required for (i) Capital issues related activities :
both pre-issued and post-issue, (ii) mergers and acquisitions, and (iii) Portfolio Management.
DEFINITION
A Investment banker is any who is engaged in the business of issue management either by
making arrangements regarding selling, buying or subscribing to securities or acting as
manager/consultant / advisors or rendering corporate advisory service in relation to such issue
management.
REGISTRATION OF INVESTMENT BANK

Compulsory Registration:
Investment bankers require compulsory registration with the SEBI to carry out their activities.
They fall under four Registration categories
Category I Investment bankers can carry on any activity related to issue management, that is ,
the preparation of prospectus and other information relating to the issue, determining the
financial structure, tie up of financiers, final allotment of securities, refund of the subscription
and also act as advisors, consultants, managers, underwriters or portfolio Managers.
Category II Investment bankers can act as advisors, consultants , co-managers, underwriters
and portfolio Mangers.
Category III Investment bankers can act as underwriters, advisors and consultants to an issue.
Category IV Investment bankers can act only as adviser or consultant to an issue.
Thus, only category I Investment bankers could act as lead managers to an issue. With effect
from December 9, 1997, however, only Category I Investment bankers are registered by the
SEBI. To carry on activities as portfolio managers, they have to obtain separate certificate of
registration from the SEBI.
Net worth requirement for Registration is as follow:

Category I : Rs. 5,00,00,000
Category II : Rs. 50, 00, 000
Category III :Rs. 20, 00, 000
Category IV : Nil
GRANT OF CERTIFICATE
The SEBI grants a certificate of registration on consideration of all matters that are relevant to
the activities related to the Investment banker: (a) Investment bankers should also be a body
corporate other than a non-banking financial company. However, a Investment banker who has
been granted registration by the RBI to act as Primary Dealer may carry on such activity subject
to the condition that it would not accept / hold public deposit, (b) they are expected to have the
necessary infrastructure like adequate office space , equipment and manpower to effectively
discharge their activities (c) they should have employed at least two persons with experience to
conduct Investment banking business (d) any person directly or indirectly connected with the
applicant, (e) they fulfill the capital adequacy requirement of a minimum net worth of Rs. 5
Crore (f) partners, directors and principal offices should not be involved in any litigation
connected with the securities market, which has an adverse effect on their business (g) have
recognized professional qualification in finance , law or business management and or their
registration is in the interest of the investors and (h) the applicant is a fit and proper person. The
provisions of the SEBI criteria for Fit and proper person regulations discussed below would be
applicable to the applicants.
REGISTRATION CHARGES
An Investment banker has to pay to the SEBI
1.
Application fee of Rs.25,000;
2.
Registration , Rs. 10 Lakhs and
3.
Renewal fee of Rs. 5 lakhs every three years from the fourth year from the date of initial
registration.
CONDITIONS OF REGISTRATION
The Registration / renewal of certificate of the Investment banker would be subject to the
following conditions:
1.
Prior approval of the SEBI would be necessary to continue to act as a Investment banker
after change of its status/constitution. Change of status / Constitution means any change
in status / constitution of whatsoever nature including (a) amalgamation/demerger
/consolidation / any other kind of corporate restructuring , (b) change in its managing
/whole time directors and (c) any change in control over the body corporate. Change in
control means (i) if its shares are listed , change of control in terms of stipulations of the
SEBI takeover Regulations (ii) change in its controlling interest in any other case .
controlling interest means direct / indirect interest to the extent of at least 51 percent of
voting rights.
2.
Enter into a legally binding contract with the issuer specifying their mutual duties and
responsibilities
3.
Pay the registration / renewal fee in the prescribed manner.
4.
Take adequate steps for redressal of investors grievances within one month of the
complaint and keep the SEBI informed about the number , nature and other particular of
such complaints together with the manner of their redressal.
5.
Abide by the relevant regulations under the SEBI Act.
CODE OF CUNDUCT
1.
Make all efforts to protect the interest of investors.
2.
Maintain high standards of integrity, dignity and fairness in the conduct of its business.
3.
Fulfill its obligations in a prompt, ethical and professional manner.
4.
At all times exercise due diligence, ensure proper care and exercise independent
professional judgments
5.
Endeavour to ensure that (a) inquiries from investors are adequately dealt with; (b)
grievances of investors are redressed in a timely and appropriate manner ;(c) where a
complaint is not remedied promptly, the investor is advised of any further steps which
may be available to him under the regulatory system.
6.
Ensure that adequate disclosures are made to the investors in a timely manner in
accordance with the applicable regulations and guidelines so as to enable them to make a
balanced and informed decision.
7.
Endeavour to ensure that the investors are provide with true and adequate information
without making any misleading or exaggerated claims or any misrepresentation and are
made aware of the attendant risk before taking any investment decision.
8.
Endeavour to ensure that copies of the prospectus, offer document, letter of offer or any
other related literature is made available to the investors at the time of issue or the offer.
9.
Not discriminate amongst its clients, save and except on ethical and commercial
considerations.
10.
Not make any statement, either oral or written, which would misrepresent the services
that the Investment banker is capable of performing for any client or has rendered to any
client.
11.
Avoid conflict of interest and make adequate disclosure of its interest.
12.
Put in place a mechanism to resolve any conflict of interest situation that may arise in the
conduct of its business or where any conflict of interest arises, should take reasonable
steps to resolve the same in an equitable manner.
13.
Make appropriate disclosure to the client of its possible source or potential areas of
conflict of duties and interest while acting as Investment banker which would impair its
ability to render fair, objective and unbiased services.
14.
Always endeavor to render the best possible advice to the clients having regards to their
needs.
15.
Not divulge to anybody either or in writing, directly or indirectly , any confidential

information about its clients which has come to its knowledge, without taking prior
permission of its clients, except where such disclosures are required to be made in
compliance with any law for the time being in force
16.
Ensure that any change in registration status / any penal action taken by the SEBI or any
material change in the Investment bankers financial status, which may adversely affect
the interests of clients / investors, is promptly informed to the clients and any business
remaining outstanding is transferred to another registered intermediary in accordance
with any instructions of the affected clients.
17.
Not indulge in any unfair competition, such as weaning away the clients on assurance of
higher premium or advantageous offer price or which is likely to harm the interests of
other Investment bankers or investors or is likely to place such other Investment bankers
in a disadvantageous position which competing for or executing any assignment.
18.
Maintain arms length relationship between its Investment banking activity and any other
activity.
19.
Have internal control procedures and financial and operational capabilities which can be
reasonably expected to protect its operations, its clients, investors and other registered
entities from financial loss arising from theft, fraud, and other dishonest acts, professional
misconduct or omissions.
20.
Not make untrue statement or suppress any material fact in any documents, reports or
information furnished to the SEBI.
21.
Maintain an appropriate level of knowledge and competence and abide by the provisions
of the SEBI Act / regulations / circulars and guidelines, which may be applicable and
relevant to the activities carried on by it.
22.
Ensure that the SEBI is promptly informed about any action, legal proceedings, etc,
initiated against it in respect of material breach or non-compliance by it, of any law ,
rules, regulations , directions of the SEBI or of any other regulatory body.
23.
(a) Not render, directly or indirectly, any investment advice about any security in any
publicly accessible media, whether real-time or non real-time , unless a disclosure of his
interest including a long or short position, in the security has been made, while rendering
such advice; (b) In the event of an employee of the Investment banker rendering such
advice, the Investment banker should ensure that such employee should also disclose the
interests, if any, of himself , his dependent family members and the employer Investment
banker, including their long or short position in the security , while rendering such
advice.
24.
Demarcate the responsibilities of the various intermediaries appointed by it clearly so as

to avoid any conflict or confusion in their job description.
25.
Provide adequate freedom and powers of its compliance officer for the effective
discharge of his duties.
26.
Develop its own internal code of conduct its internal operations and laying down its
standards of appropriate conduct for its employee and officers in carrying out their duties.
Such a code may extend to the maintenance of professional excellence and standards,
integrity, confidentiality, objectivity, avoidance or resolution of conflict of interest,
disclosure of shareholding and interest etc.
27.
Ensure that good corporate policies and corporate governance are in place.
28.
Ensure that any person it employees or appoints to conduct business is fit and proper and
otherwise qualified to act in the capacity so employed or appointed.
29.
Ensure that it has adequate resources to supervise diligently and does supervise diligently
persons employed or appointed by it in the conduct of its business, in respect of dealings
in securities market.
30.
That the senior management, particularly decision makers have access to all relevant
information about the business on a timely basis.
31.
Not be a party to or instrument for (a) creation of false market ;(b) price rigging or
manipulation or; (c) passing of unpublished price sensitive information in respect of
securities which are listed and proposed to be listed in any stock exchange to any person
or intermediary in the securities market.
OFFERING & SERVICES OF INVESTMENT BANKS

Project Counseling:
Project counseling includes preparation of project reports, deciding upon the financing pattern to
finance the cost of the project and appraising the project report with the financial institutions or
banks. It also includes filling up of application forms with relevant information for obtaining
funds from financial institutions and obtaining government approval.
Issue Management:
Management of issue involves marketing of corporate securities viz. equity shares, preference
shares and debentures or bonds by offering them to public. Investment banks act as an
intermediary whose main job is to transfer capital from those who own it to those who need it.
After taking action as per SEBI guidelines, the Investment banker arranges a meeting with
company representatives and advertising agents to finalize arrangements relating to date of
opening and closing of issue, registration of prospectus, launching publicity campaign and fixing
date of board meeting to approve and sign prospectus and pass the necessary resolutions. Pricing
of issues is done by the companies in consultant with the Investment bankers.
Underwriting of Public Issue:

Underwriting is a guarantee given by the underwriter that in the event of under subscription, the
amount underwritten would be subscribed by him. Banks/Investment banking subsidiaries cannot
underwrite more than 15% of any issue.
Managers, Consultants or Advisers to the Issue:

The managers to the issue assist in the drafting of prospectus, application forms and completion
of formalities under the Companies Act, appointment of Registrar for dealing with share
applications and transfer and listing of shares of the company on the stock exchange. Companies
can appoint one or more agencies as managers to the issue.
Portfolio Management:
Portfolio refers to investment in different kinds of securities such as shares, debentures or bonds
issued by different companies and government securities. Portfolio management refers to
maintaining proper combinations of securities in a manner that they give maximum return with
minimum risk.
Advisory Service Relating to Mergers and Takeovers:

A merger is a combination of two companies into a single company where one survives and other
loses its corporate existence. A takeover is the purchase by one company acquiring controlling
interest in the share capital of another existing company. Investment bankers are the middlemen
in setting negotiation between the two companies.
Off Shore Finance:

The Investment bankers help their clients in the following areas involving foreign currency.
(a) Long term foreign currency loans
(b) Joint Ventures abroad
(c) Financing exports and imports
(d) Foreign collaboration arrangements
Non-resident Investment:
The services of Investment banker includes investment advisory services to NRI in terms of
identification of investment opportunities, selection of securities, investment management, and

operational services like purchase and sale of securities.
Loan Syndication:
Loan syndication refers to assistance rendered by Investment bankers to get mainly term loans
for projects. Such loans may be obtained from a single development finance institution or a
syndicate or consortium. Investment bankers help corporate clients to raise syndicated loans
from banks or financial institutions.
Corporate Counseling:
Corporate counseling covers the entire field of Investment banking activities viz. project
counseling, capital restructuring, public issue management, loan syndication, working capital,
fixed deposit, lease financing acceptance credit, etc.
Ranking of Merchant Banking in India:

Merchant Banker
OE
FSS
QPS
QM
INN
ICICI Securities
4.0
4.0
4.2
3.8
4.3
IDBI
4.2
3.2
4.5
4.0
4.8
SBI Caps
4.4.
3.9
4.6.
6.7
5.2
DPS
6.1
5.7
6.0
6.0
5.3
IFCI
6.1
5.7
6.0
6.0
6.3
Bank of Baroda
6.7
6.5
6.7
6.6
6.8
Jardine Fleming
5.8
6.2
5.9
5.0
5.5
JM Finance
6.0
6.5
5.5
5.9
5.4
ENAM
6.3
6.8
6.4
6.3
6.2
PNB Caps
6.8
6.8
6.7
6.8
6.8
Note: OE: Overall Excellence; FSS: Financial Soundness ; QPS: Quality Product/Service;
QM: Quality Management; INN: Innovativeness.
ORGANISATIONAL STRUCTURE IB
Front Office
Middle Office
Back Office
- Investment Banking
- Sales & Trading
- Research
- Custodian
- Investment Mgmt
- Risk
- Finance
- Compliance
- Operations
- Technology
Main activities and units

An investment bank is split into the so-called front office, middle office, and back office.
Investment banks offer security to both corporations issuing securities and investors buying
securities. For corporations investment bankers offer information on when and how to place their
securities in the market. The corporations do not have to spend on resources with which it is not
equipped. To the investor, the responsible investment banker offers protection against unsafe
securities. The offering of a few bad issues can cause serious loss to its reputation, and hence loss
of business. Therefore, investment bankers play a very important role in issuing new security
offerings
Front office
1.
Investment banking is the traditional aspect of the investment banks which also involves
helping customers raise funds in the capital markets and advise on mergers and
acquisitions. Investment banking may involve subscribing investors to a security
issuance, coordinating with bidders, or negotiating with a merger target. Another term for
the investment banking division is corporate finance, and its advisory group is often
termed mergers and acquisitions (M&A). The investment banking division (IBD) is
generally divided into industry coverage and product coverage groups. Industry coverage
groups focus on a specific industry such as healthcare, industrials, or technology, and
maintain relationships with corporations within the industry to bring in business for a
bank. Product coverage groups focus on financial products, such as mergers and
acquisitions, leveraged finance, equity, and high-grade debt and generally work and
collaborate with industry groups in the more intricate and specialized needs of a client.
1.
Sales and trading: On behalf of the bank and its clients, the primary function of a large
investment bank is buying and selling products. In market making, traders will buy and
sell financial products with the goal of making an incremental amount of money on each
trade. Sales is the term for the investment banks sales force, whose primary job is to call
on institutional and high-net-worth investors to suggest trading ideas (on caveat emptor
basis) and take orders. Sales desks then communicate their clients' orders to the
appropriate trading desks, who can price and execute trades, or structure new products
that fit a specific need. Structuring has been a relatively recent activity as derivatives
have come into play, with highly technical and numerate employees working on creating
complex structured products which typically offer much greater margins and returns than
underlying cash securities. Strategists advise external as well as internal clients on the
strategies that can be adopted in various markets. Ranging from derivatives to specific
industries, strategists place companies and industries in a quantitative framework with

full consideration of the macroeconomic scene. This strategy often affects the way the
firm will operate in the market, the direction it would like to take in terms of its
proprietary and flow positions, the suggestions salespersons give to clients, as well as the
way structures create new products. Banks also undertake risk through proprietary
trading, done by a special set of traders who do not interface with clients and through
"principal risk", risk undertaken by a trader after he buys or sells a product to a client and
does not hedge his total exposure. Banks seek to maximize profitability for a given
amount of risk on their balance sheet. The necessity for numerical ability in sales and
trading has created jobs for physics and math Ph.D.s who act as quantitative analysts.
1.
Research is the division which reviews companies and writes reports about their
prospects, often with "buy" or "sell" ratings. While the research division generates no
revenue, its resources are used to assist traders in trading, the sales force in suggesting
ideas to customers, and investment bankers by covering their clients. There is a potential
conflict of interest between the investment bank and its analysis in that published analysis
can affect the profits of the bank. Therefore in recent years the relationship between
investment banking and research has become highly regulated requiring a Chinese wall
between public and private functions.
1.
Custody and agency services is the division which provides cash management, lending,
and securities brokerage services to institutions. Prime brokerage with hedge funds has
been an especially profitable business, as well as risky, as seen in the "run on the bank"
with Bear Stearns in 2008.
1.
Investment management is the professional management of various securities (shares,

bonds, etc.) and other assets (e.g. real estate), to meet specified investment goals for the
benefit of the investors. Investors may be institutions (insurance companies, pension
funds, corporations etc.) or private investors (both directly via investment contracts and
more commonly via collective investment schemes eg. mutual funds). The investment
management division of an investment bank is generally divided into separate groups,
often known as Private Wealth Management and Private Client Services.
Middle office
1.
Risk management involves analyzing the market and credit risk that traders are taking
onto the balance sheet in conducting their daily trades, and setting limits on the amount of
capital that they are able to trade in order to prevent 'bad' trades having a detrimental
effect to a desk overall. Another key Middle Office role is to ensure that the above
mentioned economic risks are captured accurately (as per agreement of commercial terms
with the counterparty), correctly (as per standardized booking models in the most
appropriate systems) and on time (typically within 30 minutes of trade execution). In
recent years the risk of errors has become known as "operational risk" and the assurance
Middle Offices provide now includes measures to address this risk. When this assurance
is not in place, market and credit risk analysis can be unreliable and open to deliberate
manipulation.
1.
Finance areas are responsible for an investment bank's capital management and risk
monitoring. By tracking and analyzing the capital flows of the firm, the Finance division
is the principal adviser to senior management on essential areas such as controlling the
firm's global risk exposure and the profitability and structure of the firm's various
businesses. In the United States and United Kingdom, a Financial Controller is a senior
position, often reporting to the Chief Financial Officer. Corporate strategy often falls
under the finance division as well.
2.
Compliance areas are responsible for an investment bank's daily operations' compliance
with government regulations and internal regulations. Often also considered a back-office
division.
Back office
1.
Operations involve data-checking trades that have been conducted, ensuring that they
are not erroneous, and transacting the required transfers. While some believe that
operations provides the greatest job security and the bleakest career prospects of any
division within an investment bank[4], many banks have outsourced operations. It is,
however, a critical part of the bank. Due to increased competition in finance related
careers, college degrees are now mandatory at most Tier 1 investment banks.[citation needed] A
finance degree has proved significant in understanding the depth of the deals and
transactions that occur across all the divisions of the bank.
1.
Technology refers to the information technology department. Every major investment

bank has considerable amounts of in-house software, created by the technology team,
who are also responsible for technical support. Technology has changed considerably in
the last few years as more sales and trading desks are using electronic trading. Some
trades are initiated by complex algorithms for hedging purposes
CHINESE WALL CONCEPT IN INVESTMENT BANK

An investment bank can also be split into private and public functions with a
Chinese wall which separates the two to prevent information from crossing. The
private areas of the bank deal with private insider information that may not be
publicly disclosed, while the public areas such as stock analysis deal with public
information.
IPO MANAGEMENT
BRIEF ABOUT THE ISSUER:

It is a power project development company, which is developing, and will operate and maintain,
power projects in India. They have four thermal power projects under various stages of
development, with a combined installed capacity of 6,600 MW. In addition, they are also
planning to develop two power projects with a combined installed capacity of 3,300 MW. They
intend to sell the power generated from these projects under a combination of long-term power
purchase agreements to industrial and state-owned consumers and on Investment basis. They are
part of the Adani Group, a leading business group in India. Adani Enterprise Limited, their
Promoter, is the flagship company of the Adani Group, with total revenues of Rs. 196,097.10
million for the fiscal year 2008. They believe AEL was one of the largest traders of coal in India
for the three years period ended March 31, 2008, with coal mining rights both in the international
and domestic markets, and according to Central Electricity Regulatory Commission, for the three
years period ended March 31, 2008, AEL was one of the largest power traders, by volume, in
India. With the commissioning of their power projects, the Adani Group will be vertically
integrated in power sector value chain through presence in related activities such as coal mining,
coal trading, shipping, power generation, power transmission and power trading. Another Adani
Group company, Mundra Port and Special Economic Zone Limited (MPSEZL), owns and
operates one of the largest private sector commercial ports in India, a Special Economic Zone
(SEZ) at Mundra and a railway line between Mundra and Adipur leading to strong synergies
with their projects being set up in close vicinity. In addition, the Adani Group also has operations
in other industries, including commodities trading, real estate development, agro processing and
logistics. They expect that they will benefit from Adani Groups strategy of vertical integration,
which gives them greater control over various activities of power generation and trading.
OBJECTIVE OF THE ISSUE

To part finance the construction and development of Mundra Phase IV Power Project for 1,980
MW. Funding equity contribution in our subsidiary Adani Power Maharashtra Limited to part
finance the construction and development cost of power project for 1,980 MW at Tiroda,
Maharashtra and General Corporate Purposes
INDICATIVE ISSUE STRUCTURE
Issue of Equity Shares
301,652,031 Equity Shares
Employee Reservation Portion
Net Issue to the Public
QIB Portion **
Atleast 176,191,219 Equity Shares
Available for MF Only
Balance of QIB Portion (After Deducting MF )
Non-Institutional Portion
Upto 29,365,203 Equity Shares
Retail Portion
Upto 88,095,609 Equity Shares
** The Company may consider participation by Anchor Investors for upto 52,857,366
Equity Shares in accordance with applicable SEBI Guidelines
PRICE BAND: Rs. 90/- to Rs. 100/- per equity share
BID LOT: 65 Equity Shares & in multiples thereof
INDICATIVE TIMING OF ISSUE

ISSUE OPEN DATE :
28-JULY-2009
ISSUE CLOSE DATE :
31-JULY-2009
BOOK RUNNING LEAD MANAGER:
1.
ICICI Securities
2.
Kotak Securities
3.
DSP Merrill Lynch
4.
JM Financial
5.
SBI Capital Markets Limited
6.
Morgan Stanley
7.
IDFC
SYNDICATE MEMBER:
1.
Edelweiss Securities Limited
2.
India Infoline Limited
3.
UBS Securities India Private Limited
SHAREHOLDING PATTERN ( POST ISSUE ):

Promoter and Promoter Group
73.50%
3i Power Investments A1 Limited
3.13%
Adishree Tradelinks Private Limited
3.13%
Capital Trade and Investment Private Limited
1.23%
Employees
0.37%
Other
0.93%
Public
13.47%
BROKERAGE:
CATEGORY
BROKERAGE
RETAIL INVESTOR
0.35% On Amt Allotted
HNI & Non Institutional Investor
0.20% on Amt Allotted
QIB
Nil
ZONE WISE IPO SUBSCRIPTION ON 28TH JULY 2009 ICICI SECURITIES LTD
1.
OFFLINE BIDDING URL MODULE MANAUAL

Data Entry
1.
Click on the URL http://172.16.35.19/tradingscreens/
1.
Input the NT User Id and password.
2.
Select IPO Offline
3.
Select Place Bids
4.
Set Lot Size ?(enter 1) and click on Fix.
5.
Following Screen would appear. This would be the page into which the Application details have
to be inputted.
a) Select IPO Please select Adani Power Limited ADAPOW

b) Application Number This is a mandatory field without which the entry will not be saved. Number
appearing on top right hand corner of the BAF(Bid cum Application Form). Please enter full application
number along with Prefix. In the below mentioned BAF, the application form to be entered would be
14746869 wherein the prefix in this form is 1 the prefix vary from application to application
1.
Select NSDL/CDSL as per customer indication on the BAF and enter as under
1.
2.
DP Name
3.
DP Id (eight characters)
4.
Client Id (eight characters

1.
1.
NSDL
CDSL
DP Name
ii. DP Id to be left blank

1.
Client Id (sixteen character)
In DP Name care to be exercised that no special character like full stop, comma, hyphen,
ampersand is included. (. , - & ).
2.
Investor Status Select relevant status. If customer is individual select IND
3.
Bid Enter the bids put in by the customer. If he has put in three bids all three to
be filled
1.
Number of shares Has to be in multiples specified in issue offer
2.
Price Has to be within the price band
3.
Cut Off- In case customer has mentioned cut off, then just the number of
shares and cut off has to be selected
4.
Investor Name Name to be entered
5.
Phone Number and Email Id These are optional fields
6.
Agent Code to be entered as Employee Code of the employee who has procured
the application.
7.
2.
After inputting the data click on Save
On clicking save if all the entries have been entered correctly, the following prompt will appear.
Click on Ok to proceed.
In case there is some error in the data entry, there would be a prompt warning the customer
illustrated in point 4
3.
The following screen would appear. Click OK to return to the data entry screen
4.
After inputting the data if there would be an error the following prompt would appear. Branch can
either proceed by selecting Ok or can rectify the error by clicking on cancel.
If branch clicks on OK, the record would be saved
If branch clicks on Cancel, they can rectify the entry then and there and then save the record
9. After the bidding is completed the form should be submitted at the nearest collecting bank.
ICICI SECURITIES:
ICICI Securities is the largest equity house & SEBI Registered Category I Investment Banks in
the country providing end to end solution through the largest non-banking distribution channel so
as to fulfill the needs of retail and corporate clients. It has a dominant position in its core
segment of its operations Corporate Finance including Capital Market Advisory services ,
institutional equities and financial product distribution
BOARD OF DIRECTOR
5. Ms. Chanda Kocchar Chairperson

6. Mr. Ketan Patel
7. Mr.Narendra Murkumbi
8. Mr.Uday Chitale
9. Mr.Pallavi Vohra
10.
Mr. Sonjoy Chatterjee
11.
Ms. Madhabi Puri Buch MD & CEO
12.
Mr. A Murugappan - Executive Director
13.
Mr. Anup Bagchi Executive Director
RECENT AWARDS & RECOGNITION
1.
ICICI Securities is awarded as the Best Investment Bank 2008 by Global Finance
Magazine
2.
The Corporate Finance Group also awarded a runner up Best Investment Banker by
outlook Money in 2007.
GLOBAL PRESENCE
ICICI Securities has presence in following Countries
1.
India
2.
Singapore
3.
USA
4.
Oman
CORE BUSINESS :
Institutional Business
Equity Capital Market:
ICICI Securities has been at the forefront of Capital Market advisory for several decades and has been
involved in most of the major book-building and fixed price public equity issuance. It is the leading
underwriters of equity and equity linked offering. Equity product includes IPO, Rights offering,
Convertible offerings and private placement and international offerings. ICICI Securities has successfully
handled 206 Equity Public Issues, 193 Right Issues and 28 Open offers
Merger & Acquisition:

ICICI Securities is amongst the first investment banks to form a dedicated M&A practice and provide
innovative and customized solution to achieve the objectives of clients.
ICICI Securities provide buy-side and sell-side advisory services as a part of M&A advisory offerings
including JV, Mergers, and acquisitions.
Private Equity:
ICICI Securities has a dedicated practice to assist companies with capital mobilization through private
equity / Venture Capital route across their life cycle. ICICI helps companies to raise capital during the
seed , growth and expansion phases.
Retail Business
Retail Equities (ICICIdirect.com) :
ICICIdirect.com offers a convenient and easy to use platform to invest in equity and various other
products. Buying and selling shares are just a click away. It has 3-in-1 concept enables customers to tie in
their savings bank, demat and brokerage accounts electronically and seamlessly. ICICI also offers access
to comprehensive research information, stock picks, mutual funds, recommendations etc. In 3 in 1
concept, once a request is placed for investing in a particular fund, there are no manual processes
involved. Bank funds are automatically debited or credited while simultaneously crediting or debiting the
unit holdings. Client can have a control on its own investment. ICICI Direct is the first broker in india to
introduce Digital Signed Contract Note to its customer
ICICI Direct Super Store:
ICICI Direct has recently launched the concept of Super Store in India, These stores offers a variety of
financial products and services under one roof. It has also started financial planning services at these
stores. ICICI Retail customers as well as New Customer (Prospects )can walk in to ICICI Direct super
store for financial products like 3 in 1, Equities, MF, IPO, Life and General Insurance, HL, PL and Fixed
Income products. The stores also conduct periodic training session on Capital Market.
Active Trader Services (ATS) :

ATS is a offline platform for Born Traders, The client who deals more than Rs. 500000 is treated as
Active Trader . As a customer of ATS , ICICI provide Dedicated Relationship Manager , Special Research
Team to ATS Customer.
Sub Broker Channel:
This is the prime business channel in ICICI Securities, It offers Win Win partnership for entrepreneurs,
This channel acts as a business catalyst. All the Sub-Brokers are registered with ICICI Securities and able
to transact through the fully automated ICICI Direct Platform
SALES CHANNEL OF ICICI SECURITIES
SALES CHANNEL
I-Direct Stores:
In India, there are 300 ICICI Direct Center ,customer can walk in to these centers for financial
products like 3 in 1 A/c, Equities , MF , IPO, LI , GI, HL, PL and other financial products. These
stores also conduct periodic training session on capital Market.
Services like Financial planning is available in I Direct Stores, where customer can find out his
Risk Profiles and Plan his investments.
Retail :
The Team of 150 Dedicated Relationship Manager in Retail Channel, Basically They are
promoting 3 in 1 Account and Agency Sales. They are promoting all the Financial Products of
ICICI Securities
Equity Team :
Equity Team includes ATS (Active Traders Services) & EAG (Equity Advisory Group). ATS is
mainly focus on HNI Customers whose Net worth is greater than Rs.500000 and they are
actively trade in Capital Market, ICICI Provide Separate RM & Dealer Team for ATS Customer.
EAG Team Mainly Covers HNI Customers having Net worth is more than Rs. 1 Crore , They do
research on Various companies and provide Advisory Services to the Customers.
Sub-Broker Channel:
In ICICI Securities there are 60 Relationship Manager & 75 CSEs handles 900 Active Sub
Brokers Channel. This is the prime channel in ICICI Securities It offers Win Win partnership for
entrepreneurs, this channel acts as a business catalyst.
All the Sub-Brokers are registered with ICICI Securities and able to transact through the fully automated
ICICI Direct Platform
RESEARCH TEAM
This is the very important Area of Investment Banking, All the Business & Research Analyst sits
in this Team, and In ICICI Securities Most of the Analyst are hired from well known Business
School. In ICICI Securities, Research Team is divided into two segments Viz.
A) INSTITUTIONAL RESEARCH
The Institutional research team has 30 analysts, with coverage of 150 stocks. `India Unlimited', an annual
investors' conference held in Singapore and New York, witnesses excellent responses from investors
every year. The team also holds a number of theme based conferences in India that draw good responses
from the clientele
B) RETAIL RESEARCH
ICICIdirect.com research, a 30-member strong team, is a leader in independent equity research on over
170 companies, specializing in large, small and mid cap companies. Our research team makes over 300
company visits per year, meeting with management from the smallest to the largest cap companies.
Large cap companies provide an overview of industry environments, while small and mid-cap companies
are chosen 'bottom-up', providing a unique perspective from a generally under-researched end of the
market. I-Sec focus on identifying companies, which they believe are likely to generate wealth for
investor on a sustained basis through in-depth fundamental research and extensive company visits.
Research Team offers Services like Detailed Company Report, Pick of the Week, Model Portfolio, Stock
on the Move, Daily & Weekly derivatives, Intra-day calls, Daily, Weekly & Monthly Technical with an
impeccable strike rate.
Snap Shot of Research Report
OPERATIONS & PROCESS:SUB-BROKER OPERATION:

Registration Process
1.
RM approach to Sub-Broker and fill up the NSE, BSE and ICICI Securities
Application form.
2.
RM collect following from Sub-Broker along with the Application.

1.
PAN Card Copy.
2.
Address Proof (Passport / Telephone Bill / Bank Statement).
3.
Education Proof (Mark Sheet / 12th Pass Certificate).
4.
Passport Size Photo (5 Copies).
5.
CA Letter on the Letter Head.
6.
Bank Letter.
7.
Affidavit in case of Name Mismatched (If the name on Pan is different

from the name on Application).
3.
8.
DD Worth Rs.10,000 towards NSE Registration Fees.
9.
DD Worth Rs. 10,000 towards BSE Registration Fees.
10.
DD Worth Rs. 25,000 towards ICICI Sec Application Fees.
11.
DD Worth Rs. 50,000 towards Security Deposits.
RM send the above 3 files NSE , BSE and ICICI Application files to the
Operation Team which resides at Turbhe.
4.
Operation Executive inward the file in INWARD MIS
5.
Operation Executive check the documents with the help of legal & Compliance
Team and deposit DD to the escrow account.
6.
If there is any rejection he intimate it to the RMs else he sends the files to the
Exchange for the Registration.
7.
Normal TAT at Exchange is 3 to 6 Months.
8.
Once we received Registration Certificate from Exchange , Legal department

keep the original certificate and send photo copy to the respective Sub-Broker.
9.
Once certificate received by Sub-Broker , RM arrange NCFM & BCSM

Examination for Sub-Broker.
10.
Once Ops receive NCFM & BCSM from Sub-Broker , he activate the Sub-Broker
on ICICIdirect Portal, and provide username and password to the sub-broker.
SUB-BROKER CLOSURE PROCESS

RM Signs Closure Undertaking from Sub-Broker and send it to ops.
Ops Check the Undertaking, if it is OK then close the Sub-Broker.
MUTUAL FUND OPERATION:

TRANSFER IN
Transfer in is a process where the customer can bring his offline folio to ICICI Securities.
Provided he should have an ICICIdirect A/C.
Criteria for Transfer In Process:
1.
The offline folio should be in the name of same customer.
2.
The offline folio should be in the single holding pattern.
3.
If the customer has SIP in the offline folio, it needs to be cancelled before placing Transfer In
Request.
Documents required for Transfer In Process:
1.
Transfer In Request Letter
2.
No Objection Certificate (NOC)
3.
Self attested PAN Copies
4.
Statement of holding for the folio to be transferred in.
Procedure to be followed by the Customer
1.
Login to ICICIdirect A/C and go to MF Page.
2.
Click on Purchase
3.
In front of the AMC for which we wants to place a TI order, Click on the link Transfer
In.
4.
Click on the Place TI Order link.
5.
In the form that opens, select the offline scheme name and folio number and click on
Submit.
6.
Once he click on submit, he will be given an option to print this application. The
Customer needs to take a print of the application, Sign it and sent it along with NOC,
Statement of holding for the folio and PAN Copy to the Operation Team at Corporate
Office.
How does the Transfer In request take place?
1.
Once the customer places a Transfer In request online, the status of the order will be
Documents Awaited in TI Book till the customer sends the documents to us.
2.
On receipt of the documents for Transfer in, they are first verified in accordance with the
basic requirements of the respective Asset Management Company (AMC).
3.
Post verification, the documents are sent to the AMC/ Registrar for further processing and
the status of the order is changed to Sent to Registrar
4.
On confirmation from the AMC / Registrar, the number of units transferred in is updated
on the site and the status of the order then becomes Executed. The customer can then
view the units online in his unit holdings.
5.
The TAT for the Transfer In process is 15 working days from the date of receipt of
documents at ICICI Securities.
TRANSFER OUT
Transfer out is a procedure of change in broker code where an ICICIdirect customer want s to
either directly deal with AMC.
Criteria for Transfer Out Process:
1.
The customer cant transfer the unit holding in joint name as only single holder is allowed
in ICICIdirect
2.
The customer should cancel the ongoing SIP before he places a transfer out request for
these folios.
Documents required for Transfer In Process:
1.
Transfer Out Application form.
2.
Self attested PAN Copy.
Procedure to be followed by the Customer
1.
Customer needs to send the above mentioned documents to the ops at corporate office.
How does the Transfer In request take place
1.
On receipt of the Transfer Out request letter from the customer, we shall verify the
customer details, address, the bank mandate details and the signature with that in
the records of ICICI Securities.
2.
ICICI Securities will then issue an NOC, duly signed by the Authorized signatory.
3.
The Customers request letter, along with the NOC and PAN copy is then sent to
the respective AMC / Registrar for further processing.
4.
Once transfer out is done, the units holding of the customer will become nil, and
the details of the transfer out will be reflected in customers order book.
5.
The TAT for the Transfer out process is 15 working days.
INTERNAL TRANSFER FROM ONE MATCH A/C TO ANOTHER:

Internal transfer is a process where customer can transfer mutual fund unit holdings from one
Match A/c to another, provided both the Match Account are in the same name, it ensure that the
customer closes one of the accounts after the transfer is done because as per SEBI guidelines, a
customer can not maintain more than one trading a/c with a broker.
Documents required for Internal Transfer Process :
1.
Internal Transfer Application for Resident & NRI Customer
2.
PAN Copy
How can the customer transfer his units from one A/C to another ?
1.
Customer needs to submit specific formats
2.
Customer needs to place transfer in orders for all the schemes in the source match a/c
these orders have to be placed in the target match a/c.
3.
Customers should cancel any ongoing SIP in the source ICICIdirect A/C before giving
any internal transfer request. In case an internal transfer request is given with ongoing
SIPs in the source Match A/C, the same will be cancelled. The customer may in future
start a new SIP in the Target ICICI direct A/c.
Type of Internal Transfer
4.
One resident match a/c to another resident match a/c.
5.
NRI ICICIdirect a/c to resident ICICIdirect a/c.
6.
Resident ICICIdirect a/c to NRI ICICIdirect a/c.
BROKERAGE PATTERN IN ICICI SECURITIES

TYPE
AMOUNT
Business Partner Referral

Commission
Trail Commission
- ICICI Securities
- Business Partner
Commission on Equity (Cash)
Commission on Equity (Intra day)
Rs.100 Per New BP Acquisition
70% on Total Commission

30% on Total Commission
0.25% on Total Equity (Cash) Turnover
0.03% on Total Intra Day (Margin)
Commission on Derivatives
Mutual Funds
IPO
Turnover
0.03% on Total Derivative Turnover (F&O)
Avg 0.30 Paisa (Differ Scheme to Scheme)
Depend upon Issuer Company
OPERATIONAL CONTROL TEAM

It is a internal control system in ICICI Securities, Their Main Job is to check the Operational
Activities and ensure whether the work is getting done as per the TAT given. If there is any
deviation in Work, they escalate the issue to Operational Control Team. Then OCT investigate
the matter and find out the reason for the deviations. It is Team of 4 excellent Professionals. They
screen the operational Activities. Operation Control releases following MIS on Monthly basis
across the channel.
Area
Observations
Remarks
Process
Owner
6 cases observed.
Team to provide the

Refund of security deposit to (Refer Annexure 1 for the list of sub
reasons for delay of
the sub-brokers
brokers status which are closed for more refund and target date for
than 6 months and security deposits due to refunding the same.
be refunded)
Prior to Apr 09:
Total number of cases 352
Pending with Operations 5 Pending with
Sales 132
Team to provide reasons
(Prior to April, 08: 16)
Pre registration (Sub
for pending cases at their
Pending with Exchange 215
broker Acquisition Status)
end and resolve them
Current financial year (0910):
within TAT.
Total pending cases 30
Operations 0
Sales 20
Exchange 10
Queries pending to be
Team to provide reasons
1) Refund of security deposit - 4.
resolved
for pending cases at their
end and resolve them
2) CTCL mapping - 4.
3) Change in personal details - Sub-broker within TAT.
- 2.
4) Shifting of accounts - Retail to DBC 1.
5) Shifting of account - Sub-broker to subbroker - 1.
Anil Desale
Anil Desale/
Samardeep
Sood
Anil Desale
6) Creation of additional node id - 1.

7) V- Sat related - refund not received - 1.
Active sub broker which are
Operations 4
not registered
Sales 21
Exchange 66
NSE undertaking for
Total cases 803
additional clauses under sub
broker agreement.
Pending with sales 2
Team to provide reasons Anil Desale /

for cases pending with
Samardeep
operations.
Sood
Team to provide the
target date for resolving
these pending cases.
Manoj Kabra
Authorized person for FNO

active sub broker
Team to provide the

target date for resolving
these pending cases.
Manoj Kabra
BCSM compliant node
Team to update the status

Arvind Gogia
on total BCSM node id.
BCSM non- compliant node 465
Pending with sales:

Sub brokers to be closed For
FY 2008-09
NSE 36
BSE 30
4 cases observed.
SEBI fees yet to be
recovered
Details as per Annexure : 2
1) Linking & De-linking of Match Id's Linking,De linking,Shifting
34.
of clients in sub broker
2) Shifting of match id's 28.
Samardeep
Sood.
Team to update on details

Anil Desale
of recovery (if any).
Team to update the count
Anil Desale
for the same
LEGAL & COMPLIANCE TEAM

This department's responsibility is to assist the various business units to understand and
comply with SEBI guidelines with ICICI's Policies Role includes information and guidance,
coordination , surveillance and enforcement,control room.
ANALYTICAL EXCELLANCE TEAM

It is a Team of 4 Analyst , They are using Analytical Tools like SAS and generate various
types of Analytical Reports and submit it to the Product and Sales Team to take decision on
Product Expansion and diversification.
MARKETING & ALLIANCES :

The main responsibility of M&A team is to organise promotional Activities like Road
Promotion, Events etc in order to generate lead and those leads they forward it to concern
Sales Channels. Also tie up with the vendors and Agencies for Marketing collatrals. Basically
they are the support to the Sales channel.
HUMAN RESOURCE
HR Conducts Interview and hires talents from Internal & External Source, Also provides
Training to the Newly hired staff, Employee Orientation, Hiring Process, Performance
Appraisal, Training and development, Conduct Games at Corporate Office.
CONCLUSION
From the above study it has been concluded that In India Investment Banks are under regulation
of SEBI, As per SEBI Guidelines on Merchant Banking , Whenever any corporate go for IPO or
M& A They have to appoint Merchant Banker for Managing the affairs
The future of Merchant Bank in India is very Bright , if you consider present Market Situation
where Sensex & Nifty Index is 16000 & 5000 Respectively. So many corporate have declared
and filed IPO & M&A With SEBI. Merchant Bankers act as a Lead Manager and as a lead
manager they underwrite the Issue.
The major revenue for merchant banks is received from the IPO, M&A, Advisory Services; it is
purely fee based business. As we know in US Last year big investment bankers collapsed, the
reason being Sub Prime Crisis. In US investment banks lend money on mortgage so sudden
economical change reduced the demand for Real Estate and the prices of the property fallen
down. So ultimately the fund which was financed for Housing has also been shrinking.
BIBILIOGRAPHY
1.
Manchiraju, H.R., "Merchant banking Principles and Practice, New Age

International (p) Limited Publishers, New Delhi.
2.
SEBI: Merchant Banking Regulations, 1992.
3.
www.investopedia.com
4.
www.wikipedia.com
5.
www.icicisecurities.com
6.
www.moneycontrol.com
7.
www.google.com
8.
www.sebi.org
9.
www.rbi.org

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INVESTMENT BANKING IN

LALA LAJPATRAI INSTITUTE OF MANAGEMENT,

1 |Investment Banking in India

2 |Investment Banking in India

PROJECT GUIDE CERTIFICATE FORM

Signature of the Internal Guide

3 |Investment Banking in India

Signature of the Candidate

Signature of Internal Guide

PROJECT GUIDE CERTIFICATE FORM

4 |Investment Banking in India

5 |Investment Banking in India

Thanking You All,

REGISTRATION OF INVESTMENT BANK

OFFERING AND SERVICES OF INVESTMENT BANK

CHINESE WALL CONCEPT

CASE STUDY : ADANI POWER IPO

CASE STUDY : ICICI SECURITIES

6 |Investment Banking in India

Mutual Fund Operations

Human Resource, Legal & Compliance

7 |Investment Banking in India

Product Advisory Group

Equity advisory group

Analytics & Marketing

Study the overall view of the Indian Investment Banks.

Study the Regulatory Requirement for Registration of

Know the Revenue (Brokerage / Commission) Generation

8 |Investment Banking in India

Know the Pre-Issue & Post Issue Management of IPO &

9 |Investment Banking in India

responsibilities of the team. They helped me to understand the meaning &

Data related to Registration, Functions, Code of Conducts of Investment

REGISTRATION OF INVESTMENT BANK

Net worth requirement for Registration is as follow:

Application fee of Rs.25,000;

Registration , Rs. 10 Lakhs and

Pay the registration / renewal fee in the prescribed manner.

Abide by the relevant regulations under the SEBI Act.

Make all efforts to protect the interest of investors.

Fulfill its obligations in a prompt, ethical and professional manner.

Avoid conflict of interest and make adequate disclosure of its interest.

Not divulge to anybody either or in writing, directly or indirectly , any confidential

Demarcate the responsibilities of the various intermediaries appointed by it clearly so as

OFFERING & SERVICES OF INVESTMENT BANKS

Underwriting of Public Issue:

Managers, Consultants or Advisers to the Issue:

Advisory Service Relating to Mergers and Takeovers:

Off Shore Finance:

identification of investment opportunities, selection of securities, investment management, and

Ranking of Merchant Banking in India:

Main activities and units

industries, strategists place companies and industries in a quantitative framework with

Investment management is the professional management of various securities (shares,

Technology refers to the information technology department. Every major investment

CHINESE WALL CONCEPT IN INVESTMENT BANK

BRIEF ABOUT THE ISSUER:

OBJECTIVE OF THE ISSUE

301,652,031 Equity Shares

Employee Reservation Portion

8,000,000 Equity Shares

Net Issue to the Public

293,652,031 Equity Shares