IN1kCDUC1ICN

W An lnvesLmenL bank ls a flnanclal lnsLlLuLlon LhaL ralses caplLal

Lrades ln securlLles and manages corporaLe mergers and
acqulslLlons
W lnvesLmenL banks proflL from companles and governmenLs by
ralslng money Lhrough lssulng and selllng securlLles ln Lhe caplLal
markeLs (boLh equlLy bond) and lnsurlng bonds as well as
provldlng advlce on LransacLlons such as mergers and
acqulslLlons
W A ma[orlLy of lnvesLmenL banks offer sLraLeglc advlsory servlces
for mergers acqulslLlons dlvesLlLure or oLher flnanclal servlces
for cllenLs such as Lhe Lradlng of derlvaLlves flxed lncome
forelgn exchange commodlLy and equlLy securlLles
JC NLLDS INVLS1MLN1 8ANk
W Any flrm conLemplaLlng a slgnlflcanL LransacLlon can beneflL
from Lhe advlce of an lnvesLmenL bank
W A quallLy lnvesLmenL banklng flrm can provlde Lhe servlces
requlred Lo lnlLlaLe and execuLe a ma[or LransacLlon
W Lhereby empowerlng small Lo medlum slzed companles wlLh
flnanclal and LransacLlon experlence wlLhouL Lhe addlLlon of
permanenL overhead an lnvesLmenL bank provldes
ob[ecLlvlLy a valuable conLacL neLwork allows for efflclenL use
of cllenL personnel and ls vlLally lnLeresLed ln seelng Lhe
LransacLlon close
JA1 DCLS INVLS1MLN1 8ANkS DC ?
W Corporate I|nance
W Sa|es
W 1rad|ng
W kesearch
W Synd|cate
CCkCkA1L IINANCL
W corporate f|nance genera||y performs two d|fferent funct|ons
Mergers and acqu|s|t|ons adv|sory Cn Lhe mergers
and acqulslLlons (MA) advlslng slde of corporaLe flnance
bankers asslsL ln negoLlaLlng and sLrucLurlng a merger beLween
Lwo companles
2 Underwr|t|ng 1he underwrlLlng funcLlon wlLhln corporaLe
flnance lnvolves shepherdlng Lhe process of ralslng caplLal for a
company
SALLS
W Sa|es |s another core component of any |nvestment bank
Sa|espeop|e take the form of
1he C|ass|c keta|| 8roker rokers develop
relaLlonshlps wlLh lndlvldual lnvesLors and sell sLocks and
sLock advlce Lo Lhe average !oe
2 1he Inst|tut|ona| Sa|esperson lnsLlLuLlonal
salespeople develop buslness relaLlonshlps wlLh large
lnsLlLuLlonal lnvesLors
3 1he r|vate C||ent Serv|ce kepresentat|ve
rlvaLe CllenL Servlce (CS) represenLaLlves lle
somewhere beLween reLall brokers and lnsLlLuLlonal
salespeople provldlng brokerage and money
managemenL servlces for exLremely wealLhy lndlvlduals
1kADING
W 1raders faclllLaLe Lhe buylng and selllng of sLock bonds or oLher
securlLles such as currencles elLher by carrylng an lnvenLory of
securlLles for sale or by execuLlng a glven Lrade for a cllenL
W 1raders deal wlLh LransacLlons large and small and provlde llquldlLy
(Lhe ablllLy Lo buy and sell securlLles) for Lhe markeL (1hls ls ofLen
called maklng a markeL)
W 1raders make money by purchaslng securlLles and selllng Lhem aL a
sllghLly hlgher prlce 1hls prlce dlfferenLlal ls called Lhe bldask
spread
kLSLAkC
W esearch analysLs follow sLocks and bonds and make
recommendaLlons on wheLher Lo buy sell or hold Lhose securlLles
W SLock analysLs (known as equlLy analysLs) Lyplcally focus on one
lndusLry and wlll cover up Lo 20 companles sLocks aL any glven
Llme
W Salespeople wlLhln Lhe lbank uLlllze research publlshed by analysLs
Lo convlnce Lhelr cllenLs Lo buy or sell securlLles Lhrough Lhelr flrm
W epuLable research analysLs can generaLe subsLanLlal corporaLe
flnance buslness as well as subsLanLlal Lradlng acLlvlLy and Lhus are
an lnLegral parL of any lnvesLmenL bank
SNDICA1L
W 1he hub of Lhe lnvesLmenL banklng wheel syndlcaLe provldes
a vlLal llnk beLween salespeople and corporaLe flnance
W SyndlcaLe exlsLs Lo faclllLaLe Lhe placlng of securlLles ln a
publlc offerlng a knockdown dragouL affalr beLween and
among buyers of offerlngs and Lhe lnvesLmenL banks
managlng Lhe process
W ln a corporaLe or munlclpal debL deal syndlcaLe also
deLermlnes Lhe allocaLlon of bonds
CkGANI2A1ICNAL S1kUC1UkL CI AN
INVLS1MLN1 8ANk
W An |nvestment bank |s sp||t |nto the soca||ed front off|ce m|dd|e
off|ce and back off|ce
W Iront off|ce
W M|dd|e off|ce
W 8ack off|ce
IkCN1 CIIICL
W lnvesLmenL banklng ls Lhe LradlLlonal aspecL of Lhe lnvesLmenL
banks whlch also lnvolves helplng cusLomers ralse funds ln Lhe
caplLal markeLs and advlse on mergers and acqulslLlons
W lnvesLmenL managemenL ls Lhe professlonal managemenL of
varlous securlLles (shares bonds eLc) and oLher asseLs (eg
real esLaLe) Lo meeL speclfled lnvesLmenL goals for Lhe beneflL
of Lhe lnvesLors
MIDDLL CIIICL
W k|sk management lnvolves analyzlng Lhe markeL and credlL rlsk LhaL
Lraders are Laklng onLo Lhe balance sheeL ln conducLlng Lhelr dally
Lrades and seLLlng llmlLs on Lhe amounL of caplLal LhaL Lhey are
able Lo Lrade ln order Lo prevenL bad Lrades havlng a deLrlmenLal
effecL on a desk overall
W AnoLher key Mlddle Cfflce role ls Lo ensure LhaL Lhe economlc rlsks
are capLured accuraLely (as per agreemenL of commerclal Lerms
wlLh Lhe counLerparLy) correcLly (as per sLandardlzed booklng
models ln Lhe mosL approprlaLe sysLems) and on Llme (Lyplcally
wlLhln 30 mlnuLes of Lrade execuLlon)
W Corporate treasury ls responslble for an lnvesLmenL banks fundlng
caplLal sLrucLure managemenL and llquldlLy rlsk monlLorlng
W Corporate strategy along wlLh rlsk Lreasury and conLrollers also
ofLen falls under Lhe flnance dlvlslon
8ACk CIIICL
W Cperat|ons lnvolves daLachecklng Lrades LhaL have been
conducLed ensurlng LhaL Lhey are noL erroneous and
LransacLlng Lhe requlred Lransfers
W 1echno|ogy refers Lo Lhe lnformaLlon Lechnology deparLmenL
Lvery ma[or lnvesLmenL bank has conslderable amounLs of ln
house sofLware creaLed by Lhe Lechnology Leam who are also
responslble for Lechnlcal supporL 1echnology has changed
conslderably ln Lhe lasL few years as more sales and Lradlng
desks are uslng elecLronlc Lradlng Some Lrades are lnlLlaLed
by complex algorlLhms for hedglng purposes
Investment 8ank|ng I|rms |n Ind|a
W kotak Mah|ndra lnlLlaLed ln Lhe year 1984 koLak Mahlndra ls lndlas
foremosL prlvaLe flnanclal lnsLlLuLlon 1he dlverse flnanclal servlces offered
by Lhe flrm are commerclal banklng llfe assurance lnvesLmenL banklng
and sLock broklng 1he bank feaLures among Lhe few flrsL companles Lo be
cerLlfled under eserve ank of lndla ln 2003
W S8I Cap|ta| Markets SlCA ls provldlng sLock broklng faclllLles slnce Lhe
year 2001 1he company ls an assoclaLe of SL and nSL caplLal markeL
dlvlslons 1he brokerage faclllLles offered by Lhe flrm are lnLerneL broklng
organlzaLlonal equlLy reLall cusLomer group equlLy asseL managemenL
soluLlons and equlLy derlvaLlves
W ICICI Secur|t|es rovldlng nonsLop soluLlons Lhrough Lhe blggesL non
banklng supply neLwork lClCl SecurlLles meeL Lhe varlous requlremenLs of
lLs cusLomer base 1he flrm operaLes ln flscal producL supply LqulLy
CaplLal MarkeLs ConsulLaLlon laclllLles eLall ManagemenL CrganlzaLlonal
LqulLles eLc
W S8C ln lndla PSC conLrols Lhrough lLs varlous subordlnaLes namely
PSC CperaLlons and rocesslng LnLerprlse PSC AsseL ManagemenL
PSC SecurlLles and CaplLal MarkeLs PSC lnsurance rokers PSC
SofLware uevelopmenL (lndla) rlvaLe LlmlLed eLc