MERCHANT BANKING

Presented by Group-8 ChandrasekharDas(10202152) Pratik Dasgupta ( 10202153) Tonoy Banerjee(10202156) Madhusudan Palo(10202177)

What Is Merchant Banking?
 According to SEBI:- any person who is engaged in the business

of issue management either by making arrangement regarding selling, buying or subscribing as manager, consultant advisor or rendering corporate advisory services in relation to such issue management.

History
 In 1967 first formal merchant bank was established :

Grindlays bank.
 In 1972 first Indian bank start to merchant banking (SBI).

 Foreign exchange regulation act 1973.
 Liberalization of economy in 1991-92.  In mid 90s SEBI formulated regulations (issue of shares).

Function
 Issue management  Underwriting  Project appraisal  Project finance  Corporate counseling.

Types of issue
 IPO  FPO  Right issue  Preferential Issue.

Classification
Category 1
To carry on the activity of issue management & to act as an advisor, consultant manager, under writer, portfolio manager

Category 2
To act as an advisory consultant, underwriter and portfolio manager.

Category 3
To act as an advisor, consultant to an issue.

Category 4
To act as an advisor or consultant

Net Worth of Rs 5 Crore

Net Worth of Rs 50 Lakh

Net Worth of Rs. 20 Lakh

No Requirement

Organizational structure
CEO/MD

VP(marketing and HR) VP( research)

VP(equity) VP(Legal department)

VP(fixed income)

Hr and marketing manager
Economists and analyst

GM

CS and lawyers

GM

TEAM leaders

Team leaders

Merchant Banking Divisions

Foreign Banks

Indian Banks

Financial Institutions

Private Merchant Bankers

Subsidiary Institutions

A Division Within The Bank

JM Financial Consultants Pvt. Ltd.
 Nimesh Kampani is the founder and chairman of the JM Financial

group of companies.
 Well diversified business in financial services industry like broking ,

merchant banking
 Headquartered in Mumbai, India.  Market capitalization is Rs. 26.2 billion, or roughly US$560 million.  Net worth is Rs. 1618 crores.

Achievements
Won number of awards: 2011- IFLR India Awards and Morning Star Fund Awards (

Indian investment bank and fund manager category)
 2010-ICRA Mutual Fund Awards (open ended gilt fund)  2009-Finance Asia Country Awards for Achievement( equity

house)
 2008-outlook Money NDTV profit award ( merchant banker)

PNB Investment Services Ltd.
 Is a Category I Merchant Banker registered with

Securities Exchange Board of India (SEBI).  believe in ensuring good corporate governance and wealth maximization of company as well as the stake holders along with compliance and transparency.

Product Portfolio
 Managing Initial Public Offerings and Follow-on Public  

 

offerings and Offers-for-Sale. Managing Rights Offering, be it the traditional or the structured formats. Open offers and Buyback Arranging Promoter’s contribution in new projects, expansion restructuring or dilution of stake from Venture Capital or other Private Equity player. Offerings of convertible securities. Public offering of Corporate structured bonds.

Latest On PNBSIL
 PNB to help doctors become entrepreneurs - PNB

Investment Services Ltd. will provide the services.  Taksheel Solutions files IPO papers with SEBI - PNB Investment Services Ltd is BRLM.

Awards and achievements
 Shri L.P. Agarwal, Managing Director & CEO of PNB

Investment Services Limited has been awarded AMITY Leadership Award for sectoral excellence in investment banking by AMITY Business School on the occasion of the 6th Global Leadership Summit.

Conclusion
 There are approx 1200 Merchant Bankers in the

country out of which SEBI has granted registration to 790.  The growth of the capital market in 90s is due to key role played by Merchant banking divisions.  They do dominate the market in providing professional service to corporate sector.  The future growth of the capital market depends on financial service available to corporate sectors.

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