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A PROJECT REPORT ON

MASTER OF FINANCE CONTROL SESSION (2008-2010)

ANALYSIS OF MERCHANT BANKING IN INDIA

SUBMITTED TO:Department of commerce, Kurukshetra University Kurukshetra (Haryana)
Submitted by:Vinay Gulati Roll no. MFC,44

CONTENTS
Sr.No.     Chapter I Preface Guide Certificate Declaration Acknowledgement

Introduction (Conceptual Framework)      Introduction Significance of the study Merchant Banking in India Focus of the Study Conceptualization

Chapter II

literature Review

Chapter III

Objective &Methodology     Objective of the study Research design Sample size & Technique Data collection (Primary & Secondary)

Chapter IV

Data Presentation & Analysis

Chapter V

Implications & Conclusions

Chapter VI

Bibliography

Introduction (Conceptual Framework)

INTRODUCTION
Original Definition: A Merchant Bank is a British term for a bank providing various financial services such as accepting bills arising out of trade, providing advice on acquisitions, management. The Focus Definition: A Merchant Bank can be generally described as a financial services company with a private equity investment arm offering investment banking and ancillary services as well. Because a merchant bank acts not only as an advisor and broker but also as a principal, a merchant bank has a longer term approach than a typical investment bank and is highly concerned with the viability of each investment mergers, foreign exchange, underwriting new issues, and portfolio

opportunity and providing the right advice for a strong partnership with each client company. In banking, a merchant bank is a traditional term for an Investment Bank. It can also be used to describe the private equity activities of banking. This article is about the history of banking as developed by merchants, from the Middle Ages onwards. Amidst the swift changes sweeping the financial world, Merchant Banking has emerged as an indispensable financial advisory package. Merchant banking is a service-oriented function that transfers capital from those who own to those who can use it. They try to identify the needs of the investors & corporate sector & advice entrepreneurs what to do to be successful. The merchant banking has been defined as to what a merchant banker does. A merchant Banker has been defined by Securities Exchange Board Of India (Merchant Banker) rules, 1992, as ³Any person 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, advisor or rendering corporate advisory services in relation to such issue managemen

are in fact the original "banks". The East India Trading Company secured a Royal Warrant from England. The colonies of other European countries were started in the same manner. now so called. the Dutch merchant adventurers were active in what are now Indonesia. The English colony was started by what we would today call merchant bankers. but did not bind the Jews. according to today's accepted sense of the word. For example. As the Lombardy merchants and bankers grew in stature on the back of the Lombard plains cereal crops many of the displaced Jews who had fled persecution after 613 entered the trade. However. the largest companies of the world was merchant adventurers. along side the local traders. and set up their benches to trade in crops. could lend to farmers against crops in the field. so they entered the great trading piazzas and halls of Lombardy. on the other hand. along the Silk Road. the collected large amounts of money to finance trade across parts of the world. The Jewish newcomers. . a high-risk loan at what would have been considered usurious rates by the Church.MERCHANT BANKING HISTORY In late 17th and early 18th century Europe. In this way they could secure the grain sale rights against the eventual harvest. providing the firm with official rights to lucrative trading activities in India. because of the firm's involvement in financing. the French and Portuguese acted similarly in their respective colonies. For example. negotiating. who were trading grain debt instead of grain. They brought with them to the grain trade ancient practices that had grown to normalcy in the middle and far east. for the finance of long distance goods trades. The Jews could not hold land in Italy. the colonies and their progress stem from the business of merchant banks. Supported by wealthy groups of people and a network of overseas trading posts. This two-handed trade was time consuming and soon there arose a class of merchants. This company was the forerunner in developing the crown jewel of the English Empire. as evidenced by the activities of the famous Hudson Bay Company. These were invented in the middle Ages by Italian grain merchants. They then began to advance against the delivery of grain shipped to distant ports. Christians were strictly forbidden the sin of usury. They had one great advantage over the locals. In both cases they made their profit from the present discount against the future price. Merchant banks. One does not typically look at these countries' economic development as having been fueled by merchant bank adventurers. The American colonies also represent the product of merchant banking. and implementing trade transactions.

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Often. The role of the merchant banker. who had the expertise to understand a particular transaction. as the term has evolved in Europe from the 18th century to today. and shipping of goods. . the merchant banker acted as a capital sources whose primary activity was directed towards a commodity trader/cargo owner who was involved in the buying.TRADATIONAL MERCHANT BANKING Merchant Banking. Merchant banking services span from the earliest negotiations from a transaction to its actual consummation between buyer and seller. pertained to an individual or a banking house whose primary function was to facilitate the business process between a product and the financial requirements for its development. In particular. the merchant banker also became involved in the actual negotiations between a buyer and seller in a transaction. was to arrange the necessary capital and ensure that the transaction would ultimately produce "collectable" profits. selling.

been considerably broadened to include a composite of modern day skills. the term merchant banker has. Most companies that come to a U. Some people might question whether or not there are many individuals or organizations that have the abilities to fulfill all three areas of expertise. merchant banks actually own and run businesses for their own account. .the actual sale of the product and the collection of profit. European merchant banks expanded their services. merchant bank are looking to increase their financial stability or satisfy a particular. Professional merchant bankers must have: 1) an understanding of the product. The modern European merchant bank. Since the 18th century. a commercial and/or investment banker plus that of a transaction broker. therefore. in many ways. however.S. effective skills in concluding a transaction . and that of others. reflects the early activities and breadth of services of the colonial trading companies. immediate capital need. Today a merchant banker is who has the ability to merchandise -.MODERN MERCHANT BANKING During the 20th century. These skills include those inherent in an entrepreneur. 2) an ability to raise capital which might or might not be one's own (originally merchant bankers supplied their own capital and thereby took an equity interest in the transaction). 3) and most importantly. a management advisor.that is.and fulfill capital requirements. its industry and operational management. They became increasingly involved in the actual running of the business for which the transaction was conducted. create or expands a need -. Today.

they are not regulated. do not take money from the public and are international in scope. -Because they do not invest against collateral. -Their secondary income sources are consulting. -The reason that businesses should develop a working relationship with a merchant bank is that they have more money than venture capitalists. financial market speculation. Their advice tends to be more pragmatic than venture capitalists. -Anyone considering dealing with any merchant bank should investigate the bank and its managers before seeking their help.Who are merchant bankers ? -Merchant banks are private financial institution. they take far greater risks than traditional banks. Mergers & Acquisitions help and -Because they are private. . -Their primary sources of income are PIPE (Private Investment In Public Entities) financings and international trade.

Advice and help in taking your company public. They can advise or help with a company¶s M&A strategy. If they are unwilling to supply Investment Banking bridge loans.Functions of Merchant Bankers: × × Consulting advice on going public and international business. they have a low cost strategy for taking your company public. They are corporations essential advisors for companies seeking to become multinational . × × × They do PIPE (Private Investment in Public Equities) financings.

tools & techniques to solve vital problems.SIGNIFICANCE OF THE STUDY × It would help us to develop the ability to study the functioning of Merchant Banking in India & learn & apply multidisciplinary concepts. × They sector would help us to draw comparison between public & private companies engaged in Merchant Banking activities. . × Based upon the comparison. × It familiarizes with the various services provided by Merchant Bankers. it would help us to determine which sector has more growth potential & where should one invest his/her funds to maximize the return at minimum risk.

MERCHANT IN INDIA BANKING .

The SEBI authorized Merchant Bankers Include merchant Banking divisions of All India Financial Institutions. It is a function that facilitates the low of capital in the market.an overview Companies raise capital by issuing securities in the market. finance & investment (231) . Merchant banker registered with SEBI: Public Sector: . Merchant bankers act as intermediaries between the issuers of capital and the ultimate investors who purchase these securities. Currently. × × × × Grindlays Banks ± 1967 Citi banks ± 1970 SBI ± 1973 ICICI . Banks (10). underwriting activities & financial consultancy & investment advisory service firms. of merchant bankers in India are approx. the total no. State Institutions (4) Private sector: . nationalized & foreign banks. Currently Merchant Banking activity has mushroomed in the Indian capital market with both public & private sector settings up their respective merchant Banking divisions.MERCHANT BANKING IN INDIA In India Merchant Banking activities started from the year 1967. subsidies of the commercial banks. following the footsteps of similar activities in UK & USA. Financial Institutions (6). Merchant banking« is the financial intermediation that matches the entities that need capital and those that have capital.International bankers (10).Commercial banks (24). private merchant banks engaged in stock broking.1974 Merchant banking in India . 1450 with more than 930 registered with SEBI.

the appropriate capital structure theory is also framed. Placement and distribution- The merchant banker helps in distributing various securities like equity shares. debt instruments. financial institutions etc. commercial paper to name a few. fixed deposits. and evaluate cheaper sources of funds. and marketing of the issue. Another area of advice is rehabilitation and turnaround management. Merchant banks act as an intermediary whose main job is to transfer capital from those who own it to those who need it. Financial structuring includes determining the right debt-equity ratio and gearing ratio for the client. equity shares. insurance products. He advises the client on different hedging strategies and suggests the appropriate strategy. Merchant bankers also explore the refinancing alternatives of the client. pension funds. pricing the issue. Issue Management: Management of issue involves marketing of corporate securities viz. Pricing of issues is done by the companies in consultant with the merchant bankers. Risk management is another area where advice from a merchant banker is sought. Underwriting of Public Issue: Underwriting is a guarantee given by the underwriter that in the event of under subscription. Banks/Merchant banking subsidiaries cannot underwrite more than 15% of any issue. underwriting support. the merchant banker arranges a meeting with company representatives and advertising agents to finalize Arrangements relating to date of opening and closing of issue. launching publicity campaign and fixing date of board meeting to approve and sign prospectus and pass the necessary resolutions. The main areas of work in this regard include: instrument designing. The distribution network of the merchant banker can be classified as institutional and retail in nature. He assists the companies in raising funds from the market. foreign institutional investors. registration of the offer document. The size of such a network represents the wholesale reach of the merchant banker. allotment and refund. private equity funds. After taking action as per SEBI guidelines. mutual fund products. The retail network depends on networking with investors. In case of sick units. . registration of prospectus. listing on stock exchanges. preference shares and debentures or bonds by offering them to public. The institutional network consists of mutual funds. the amount underwritten would be subscribed by him. merchant bankers may design a revival package in coordination with banks and financial institutions.The following comprise the main functions of a merchant banker in India: Management of debt and equity offeringsThis forms the main function of the merchant banker.

Project Counseling: Project counseling includes preparation of project reports. which is circulated to various banks and financial institutions and they are invited to participate in the syndicate. Then the merchant banker prepares a detailed loan memorandum. debentures or bonds issued by different companies and government securities. working capital. and operational services like purchase and sale of securities. selection of securities. (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 merchant banker includes investment advisory services to NRI in terms of identification of investment opportunities. Merchant bankers also offer customized solutions to their client¶s financial problems. Corporate Counseling and advisory services: Corporate counseling covers the entire field of merchant banking activities viz. investment management. lease financing acceptance credit. etc. Off Shore Finance: The merchant bankers help their clients in the following areas involving foreign currency. loan syndication. This takes place in a series of steps.Merchant bankers arrange to tie up loans for their clients.Merchant bankers help companies in obtaining venture capital financing for financing their new and innovative strategies. Portfolio management refers to maintaining proper combinations of securities in a manner that they give maximum return with minimum risk. Providing venture capital and mezzanine financing. capital restructuring. based on which the terms of borrowings can be defined. public issue management. Firstly they analyses the pattern of the client¶s cash flows. project counseling. . It also includes filling up of application forms with relevant information for obtaining funds from financial Institutions and obtaining government approval. fixed deposit. Portfolio Management: Portfolio refers to investment in different kinds of securities such as shares. deciding upon the financing pattern to finance the cost of the project and appraising the project report with the financial institutions or banks. Loan syndication.

g. the STOCKBROKER UNDERWRITER ASSOCIATION(SUA) was esteblished in 1984. private merchant bankers have also started reorganising their activities e. These subsidiaries offer more specialised services with proffecinal expertise & skills .. J.. Many more subsidiaries are being set up by another nationalise banks. Was incorporated as the first such subsidiary of sbi on 2 july.. to evolve a code of conduct for underwriters & to render legal & other services to members & public. the merchant banking division of the nationalise banks have stated forming independent subsidiaries.M finacial & investment consultancy ltd. to provide information about new issues of capital market.Developments in Merchant banking Establishments In India × Setting up of banks Subsidiaries: In order to meet the growing demand for broad-based finacial services from the corporate sector more effectively. 1986. 20 th century finance corporation ltd. LKP merchant finacing ltd are some of the private sector firms of merchant bankers who have taken steps to reorganise their activities. . × Establishment of SUA: In order to educate and protect the interest of investor . × Reorganisation of private Firms: Expecting tough Competition from growing number of merchant banking subsidiary of nationalised banks. PNB Capital Market was promoted by PNB during Mid 1988. Then CAN BANK finacial services ltd was set up as wholly owned subsidiary of canra bank in 1987. SBI capital market ltd.

underwriters. The setting up of SHC is bound to affect the capital market ain future. refinance facility from the RBI in order to meet the working capital requirement. rs 16 crores bt finacial institions & 33 crores by public sector banks. delivery of shares & collection of sale proceeds of the securities.(CRISIL) CRISIL has been set up in 1987 to provide help to investors.× Discount & Finance House of India(DFHI) DFHI was incorporated as a company under the company act 1956 with an authorised & paid up capital of rs 100 crore. CRISIL ratees various types of instruments such as debt. × Stock-Holding Corporation of India Ltd. banks & finacial institutions etc.DFHI aims at providing liquidity in money makket as it deals mainly in commercial bills. merchant bankers. & Fixed return security offered to the public. × Credit Rating Information Services of India Ltd. Out of this rs 51 crores has been contributed by RBI. of . brokers. Equity. It help the investor in taking investment decisions. It would also have line of credit from public sector banks . (SHC) SHC was set up in 1986 by the all indian financial institutions to take care safe custody.

NETWORTH RS 1 Crore portfolio management. equipment. × The applicant must have at least two employees with prior experience in merchant banking Any associate company. manpower etc. underwriter or consultant to an issue To act only as advisor& consultant to an issue Rs 50 lakh Rs 20 lakh Nil . manager. consultant . Category II Category III Category IV To act as advisor. An applicant should comply with the following norms: × × The applicant should be a body corporate The applicant should not carry on any business other than those connected with the securities market × The applicant should have necessary infrastructure like office space. portfolio management. Underwriter. WHICH ARE AS FOLLOW:CATEGORIES Category I ACTIVITIES To carry on the activities of issue mgt & act as advisor. consultant. underwriter. co-manager. group company.Registration of merchant bankers in India Registration with SEBI is mandatory to carry out the business of merchant banking in India. subsidiary or interconnected company of the applicant should not have been a registered merchant banker × The applicant should not have been involved in any securities scam or proved guilt for any offence SEBI HAS DIVIDED MERCHANT BANKER¶S IN FOUR CATEGORIES. To act as advisor.

. Ltd. Bajaj Capital. Validity period of certificate of registration is three years from the Date of issue.. an application along with renewal Fee of 2... 5 lakhs which should be paid within 15 days of date of receipt of intimation regarding Grant of certificate. Banking Bank of Divisions of IDBI & IFCI. Yes bankLtd.. Deutsche Bank.. Morgan Stanley Indian co. Leading Merchant Bankers in India In Public Sector: SBI Capital PNB Markets Ltd. Fedex Security Ltd. Tata capital market ltd. etc. issues a Certificate of registration in Form B of the SEBI (Merchant Bankers) Regulations. SEBI shall consider the application and on being satisfied renew Certificate of registration for a further period of 3 years. Reliance Security Ltd. 1992. In Private Sector: ABN AMRO. Merchant Ltd.Procedure for getting registration: An application should be submitted to SEBI in Form A of the SEBI (Merchant Bankers) Regulations. Kotak Mahindra Capital Co. and DCM Financial Services Ltd etc.. Citi Group Global Market Indian Pvt. Foreign Players: Goldman SACH (India) Security Pvt.. Axis Bank Ltd. JM Financial Co. 1992. Three months before the expiry period.. Ltd..5 lakhs should be submitted to SEBI in Form A of the SEBI (Merchant Bankers) Regulations. 1992. Capital Services Maharashtra. Ltd. Note: Please find the List of all registered Merchant Bankers with SEBI at the end in Appendix-1 . Pvt. ICICI Bank Ltd. Barclays Security Indian Pvt. Registration fee payable to SEBI: Rs. Bank of America.. Ltd. SEBI shall consider the application and on being satisfied.

Role in India .

Factors responsible for changes: Globalization of Indian Economy has made the whole economy open. 4. has now open up the doors of investment especially in the area of banks and insurance. which leads to competitive environment for the present players. The management of the customers securities The management of the portfolio The management of projects and counseling as well as appraisal. Competition arising out of Private Company participation is due to liberalization of the economy. Now they have to bring something new which is efficient and best services to live in the competitive environment. . The activities of the merchant banking in India are very vast in nature of which includes the following 1. The management of the interest and dividend etc. The management of underwriting of shares and debentures. 2. The circumvention of the syndication of loans. 5. 3. which has more multinational player in the era of the financial services? This has resulted in to the emergence of the global investment in financial sector. 6.Merchant Banking: The merchant banker are those financial intermediary involved with the activity of transferring capital funds to those borrowers who are interested in borrowing. Govt.

acquisitions or disinvestments. × Entry of Foreign Investors: Now India capital market directly taps foreign capital through euro issues. insurance companies for life and property cover. there will be great demand for merchant banker services. × Changing policy of Financial Institutions: Now the lending policies of financial institutions are based on project orientation. merger. As new units have been set up and business is expanding. A public equity or debt issue is the logical source of fund in this situation and merchant banks can tap this opportunity of growth. there will be tremendous scope for Merchant bankers. The increasing number of joint ventures also requires expert services of Merchant Bankers. agricultural banks for rural development. Economic development requires specialist financial skills: savings banks to marshal individual savings.Scope for growth of Merchant Banking in India As planning and industrial policy of the country envisaged the setting of up of new industries and technology. In order to compete. they require additional financial services. and a range of specialized government or government sponsored institutions. finance companies for consumer lending and mortgage finance. Now NSE and OTCEI are planned to raise their fund through debt instruments. If more and more NRIs participate in capital market. so the merchant banker services will be needed by corporate enterprise to provide expert guidance. They may offer good opportunities to merchant bankers . × Corporate restructuring: Due to liberalization and globalization Companies are facing lot of competition. The areas of great scope could be. × Development of debt markets: If the debt market is enhanced. There is a well proven link between economic growth and financial technology. So Merchant bankers are required to advice them for their investment in India. greater financial sophistication and financial services are required. they have to go for restructuring.FDI is increased in capital market. × Growth of Primary market: If the primary market grows and number of issues increases. the scope of merchant banking will be enhanced.

To coordinate the activities of various intermediaries to the share issue such as the registrar. marketers. buyers. THE FACTORS ON WHICH MERCHANT BANKING DEPENDS: GROWTH OF × Planning and industrial policy of the country i. business houses. 4. Advising the company on the instrument to be offered to the public. Advising the company on Legal/ regulatory matters and interaction with SEBI/ ROC/ Stock 5. 2. advertising agency.e. underwriters. brokers etc. Assisting the company in marketing the issue. Advising the company on designing of its Capital Structure. In channelizing the financial surplus of the general public into productive investment avenues. × Confidence of the people. Pricing of the instrument. × Regulatory system of the market and economy prevailing in India. financial institutions etc. 6 . 3. Bankers. traders.The scope could be extended to:1. printers. To ensure the compliance with rules and regulations governing the securities market. × Competition among the existing players and the upcoming entrants. India in this case × Prevailing Economic condition of the country. 9. . 7. 8. Exchanges and other regulatory authorities. × The economic environment of the outside world.

5% ffi ffi ffi Other expenses :. Non co-operation of issuing companies: Non co-operation of the issuing companies in timely allotment of securities and refund of application money is another problem faced by merchant bankers.Stamp duty In spite of problems popping up.5% up to Rs.0.25 crores .1 crore for authorization of merchant bankers.0. merchant banking in India has vast scope to develop because of lot of domestic as well as foreign businesses booming here.Printing .25 crores Underwriting fees Brokerage commission :.2% more in excess of Rs. Indian economy provides an amicable environment for these firms to set up.1. Merchant Banker¶s Commission: ffi ffi ffi Maximum :.Problems of Merchant Banking: Restriction of merchant banking activities: SEBI guidelines have authorized merchant bankers to undertake issue related activities and made them restrict their activities or think of separating these activities from present one and float new subsidiary and enlarge the scope of its activities. Minimum net worth of Rs.Advertising .1 crore: SEBI guidelines stipulate that a minimum net worth of Rs. .0.Registrar¶s expenses . flourish and expand here.5% Project appraisal fees Lead Manager :.

× Impossible to stay aloof from international trends. Willing to accept risks. Asset oriented. Commit their own funds. Difference Between Investment Banking & Merchant Banking: INVESTMENT BANKING × × Both fee-based and fund-based. Generally avoid risks. .Difference Between Commercial Banking & Merchant Banking: COMMERCIAL BANKING × × × Deals with Debt & Debt related finance. MERCHANT BANKING × × × Deals with Equity & Equity related finance. MERCHANT BANKING × Purely fee-based. Management oriented.

BRIEF ANALYSIS OF SOME MERCHANT BANKS OF INDIA ×SBI Bank of India ×ICICI Bank Ltd. ×Punjab National Bank ×Bank of Baroda ×Union Bank of India ×Kotak Mahindra ×Canara Bank ×IDBI BANK .

fund management. the bank operates more than 13.SBI Merchant Banking Group is strongly positioned to offer perfect financial solutions to your business. SBI¶s seasoned Team of professionals provides you with Insightful credit Information and helps you Maximize the Value from the transaction. and Nigeria. Canada.000 ATMs within India. factoring and commercial services. State Bank of India has more than 50 offices in nearly 35 other countries. Tracing its roots back some 200 years to the British East India Company (and initially established as the Bank of Calcutta in 1806). The bank has other units devoted to capital markets. SBI being an Indian entity has no India exposure ceiling. where it also owns majority stakes in seven associate banks.500 branches and over 5. Our Primary focus is On Indian Clients. and brokerage services. The Reserve Bank of India owns about 60% of State Bank of India. State Bank of India is the nation's largest bank. We specialize in the arrangement of various forms of Foreign Currency Credits for Corporate. OUR PRODUCTS AND SERVICES × × × × × Arranging External Commercial Borrowings (ECB) Arranging and participating in international loan syndication Loans backed by Export Credit Agencies Foreign currency loans under the FCNR (B) scheme Import Finance for Indian corporate . including multiple locations in the US (California).

SBI CAPITAL MARKETS LIMITED (SBICAPS) is India's leading investment bank and project advisor, assisting domestic company¶s fund-mobilization efforts for last many years.

We began operations in August 1986 as a wholly owned subsidiary of the State Bank of India, which is the largest commercial bank in India. In January 1997, fresh equity shares were issued to Asian Development Bank (ADB) and ADB now holds 13.84% stake in the equity of SBICAPS. The distinguished parentage (with a 86.16% stake) together with the long standing association of an internationally renowned financial institution like the Asian Development Bank further enhances our image as a truly 'World Class Investment Bank'. Our Mission - To provide Credible, Professional and Customer Focused world-class investment banking services. Our Vision - To be the best India based Investment Bank. SBI Group: × × × × × × The largest commercial bank group in India Position in the domestic banking sector as on 31 March 2008: 15.44% of the aggregate deposits. 15.28 % of total advances. The only Indian Bank to find a place in the Fortune Global 500 List. First Indian Bank to take up merchant banking in 1986.

SBI Capital Markets Limited: × × × × No. 1 in Asia ± Pacific for Project Advisory. Rating by Thomson Project Finance International. No. 1 in IPO¶s, managed 700+ issues (since 1989 ± source Prime Database). The only Indian Merchant Banker in the Global 10, Thomson Project Finance International 2007. Pioneer in Privatization.

Subsidiary:× × × × SBICAPS Ventures Ltd. SBICAP Securities Ltd. SBICAPS (UK) Ltd. SBICAP Trustee Company Ltd.

Associates Bank:State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Saurashtra SBI Factors & Comm. Services Ltd. SBI Funds Management (P) Ltd. SBI DFHI Ltd. SBI (California) Commercial Bank of India LLC

State Bank of Travancore

SBI International (Mauritius) Ltd. Indo-Nigerian Merchant Bank Nepal SBI Bank Limited

State Bank of Indore State Bank of Mysore

SBI Capital Markets Ltd. SBICI Bank Ltd.

SBI Life Insurance Co. Ltd

Key Personnel:Board of Directors Committee of Directors
Shri R. Sridharan (Chairman) Dr. R. H. Patil

Audit Committee
Shri D. Sundaram (Chairman) Shri R. Sridharan

Management Team

Shri Pratip Chaudhuri (Chairman) Dr. R. H. Patil

Shri S. Vishvanathan (MD & CEO ) Shri M. K. Nag (Executive Vice President)

Shri R. Sridharan Shri Bansi S. Mehta Smt. Bharati Rao Shri D. Sundaram Shri Ajay Sagar Dr. Swati A. Piramal Shri S. Vishvanathan (MD & CEO)

Shri S. Vishvanathan (MD & CEO)

Dr R. H. Patil

Promoters¶ Share: -

Performance:-

Awards:× × × × × × × × × × Asia Pacific Bank of the Year Award 2009 for Leadership in Project Finance by Thomson Reuters (pfi) India Loan House 2009 for Leadership in Loan Syndication by Thomson Reuters (ifr Asia) Asia Pacific Oil and Gas Deal of the Year 2009 for Cairn India by Thomson Reuters (pfi) African Power Deal of the Year 2009 for Morupule B by Thomson Reuters (pfi) Indian Power Deal of the Year 2009 for Sasan by Euromoney Indian Upstream Oil & Gas Deal of the Year 2009 for Cairn India by Euromoney Indian Road Deal of the year 2009 for Yamuna expressway by Euromoney Indian Telecom Deal of the Year 2009 for Aircel by Euromoney SAFA Best Presented Accounts Award 2008 Award for Excellence in Financial Reporting

SERVICE¶S:Project Advisory & Structured Finance SBICAP has built a formidable presence in the area of Project Finance Advisory and Funds Syndication with several prestigious mandates in almost every sector of the industry to its credit. Our product portfolio includes: × Project Appraisal × Structured Finance and Syndication × × × Infrastructure Project Advisory Securitisation Debt & Equity Syndication Capital Markets Capital Markets Group handles transactions in the capital markets space across multiple instrument structures. Our product and solutions bouquet includes: × Managing Initial Public Offerings and Follow-on Public offerings and Offers-forSale × Managing Rights Offering, be it the traditional or the structured formats × × × × × Qualified Institutional Placements Open offers, Buyback and Delisting of securities Offerings of convertible securities Public offering of Corporate structured bonds Arranging Private Equity to include growth capital, pre-IPO convertibles, private investments in public equity (PIPES), mezzanine debt and equity, and equity offerings completed as a private placement. Private placement of bonds Capital restructuring advisory services Advisory and arrangement services for products such as AIM Listing, Indian Depository Receipts, ADR/GDR and other off-shore equity or bond listing options

× × ×

M&A and Advisory
The M & A product portfolio includes: × Mergers & Acquisitions × Private Equity × Foreign Currency Convertible Bonds (FCCB) × Corporate Advisory

Other ICICI offerings include online banking. as well as services related to international trade finance and expatriate Indians. and insurance.1M Income growth: 167. fall under the international banking group. ICICI's retail banking group offers lending and deposit services to small businesses and individuals.3M One year growth: 99. which offers finance services and treasury products.Employees:41. Foreign operations.796. ICICI's rural and government banking unit offers micro-loans and agricultural banking.871 Employee growth: 37. with more than 600 branches and 2. Larger businesses are served by the corporate banking group.4% ICICI Advice on Wide Varity of Product: × × × Private Equity Financing Secondary sale transactions pre IPO deals .2% You see. Key numbers for fiscal year ending March. ICICI Bank is India's #2 bank (after State Bank of India).200 ATMs nationwide.1% Net income: $524. 2008: Sale: $5. asset management.

(Executive Director) Mr. Uday Chitale Mr. A. Charanjit Attra Mr. ICICI Securities (I-Sec) has a dominant position in its core segments of its operations Corporate Finance including Equity Capital Markets Advisory Services. Madhabi Puri-Buch. Retail and Financial Product Distribution. (Chairman) Mr. (Chairman) Mr. As a result of this membership. Institutional Equities. ICICI Securities Inc. Ms. Anup Bagchi. A Murugappan Mr. is a SEBI Registered CAT-1 Merchant banker. Chanda Kochhar. Subir Saha Mr. Sonjoy Chatterjee Ms..ICICI Securities Ltd is the largest equity house in the country providing end-to-end solutions (including web-based services) through the largest non-banking distribution channel so as to fulfil all the diverse needs of retail and corporate customers. (Chairperson) ICICI Securities Holding Inc. the step-down wholly owned US subsidiary of the company is a member of the National Association of Securities Dealers. securities markets. can engage in permitted activities in the U. Anup Bagchi. ICICI Securities Inc. Subir Saha Mr. is also registered with the Financial Services Authority. UK (FSA) and the Monetary Authority of Singapore (MAS). Murugappan. Gopakumar P. Inc. These activities include Dealing in Securities and Corporate Advisory Services in the United States and providing research and investment advice to US investors. (NASD). Ketan Patel Mr. (President) ICICI Securities. Board of Directors:ICICI Securities Limited. Charanjit Attra Mr. Mr. (Executive Director) .S. Narendra Murkumbi Mr. (Managing Director & CEO) Mr. Ms. Anup Bagchi. A Murugappan Mr.. Inc. Pravir Vohra Mr. ICICI Securities Inc.

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ICICIdirect wins the prestigious Outlook Money . the neighborhood financial superstore won the prestigious Franchise India `Service Retailer of the Year 2008 award. 2004-2005.India's Best eBrokerage House for 2003-2004.India's Best e-Brokerage House for 2009.India's Best e-Brokerage House for 2008. 2006-2007 and 2007-2008. Best Broker . ICICIdirect has also won the CNBC AWAAZ Consumer Award for the Most Preferred Brand of Financial Advisory Services.Awards & Recognition Institutional × × × × ICICI Securities is awarded as the Best Investment Bank 2008 by Global Finance Magazine The Corporate Finance group also was awarded a runner-up Best Merchant Banker by Outlook Money in 2007. ICICI Securities (I-Sec) topped the Prime Database League Tables 2007 for money raised through IPOs/FPOs.Web 18 Genius of the Web Awards 2007 Franchisor of the year award 2009 Retail concept of the year awards 2009 Technology × × IDG India's CIO magazine has recognized ICICI Securities as a recipient of 2009 CIO 100 award Indian Bank's Association Business Technology Awards for Best Online Trading Platform in 2006 and 2007 . The equities team was adjudged the 'Best Indian Brokerage House-2003' by Asiamoney. ICICIdirect been winning the prestigious Outlook Money . ICICIdirect. Retail × × × × × × × × ICICIdirect wins the prestigious Outlook Money .

28 bil Assets $24. and multinational companies. autos. Key numbers for fiscal year ending 2008: Sale: $2. Its personal lending services include loans for housing.300 .500 branches or service counters. as well as international banking.before the country was partitioned into India and Pakistan in 1947.1M PNB's Financial Numbers × × × × × Sales $2.32 bil Profits $.315.0M Net income: $322.Punjab National Bank (PNB) is one of India's largest nationalized banks with some 4. The bank was established in Lahore in 1895 -.79 bil Employees 58. agricultural. PNB's diverse client list includes Indian conglomerates.12 bil Market Value $2. non-resident Indians. including industrial. The financial institution offers services in personal and corporate banking. small and mid-sized businesses. and education. and export finance.

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Today it has significant international presence with a network of 72 offices in 25 countries. BOB could maintain its unique identity and established a strong national presence even before independence. Thakersey. "a bank of this nature would prove to be a beneficial agency for lending.D. transmission and deposit of money and a powerful factor in the development of art. serving generation after generation around the globe. The founder strongly believed that. Birla. M. Walchand Hirachand. Unlike other state-owned bank.G. industries and commerce of the state as also of adjoining territories". to all corners of the country. 1908 in the princely state of Baroda by the great visionary. R. BOB was amongst the first few banks to venture overseas by opening a branch at Mombassa in 1953.Bank of Baroda (BOB) was established on 20th July.M. . Sir Sayajirao Gaekwad III. Chokshi. Parikh and others.D. The Bank was led by eminent personalities and great bankers like Shri V. Bank of Baroda has 100 years of glorious performance and an uninterrupted profit record. N.

Excellent rapport with the concerned regulatory authorities. Arora . N.Independent Director Mr.Ravi Kumar . Strong relationship with fellow Market Intermediaries.Nominee Director Mr. Private Placement of Debt. Mergers & Acquisitions. Strong pool of clients consisting of Blue chip and mid cap companies. Business Valuation. Raj Kumar Aggarwal . Project Appraisal and Loan Syndication. Swaminathan . Joshi .Whole Time Director . Akshay M. Good liaison with Banks and Financial Institutions. We are shortly commencing Broking/E-broking Business. Singular Strengths × × × × × Patronage of Bank of Baroda Excellent association with Banks and Financial Institutions Good relationship with fellow market intermediaries Large client base consisting of blue chip and midcap companies Good rapport with regulatory authorities Strengths × × × × × × Patronage of over 101 years old "Bank of Baroda" having more than 3000 branches across India and 70 branches overseas.H. (BOBCAPS) is a wholly owned subsidiary of Bank of Baroda. Corporate Restructuring. Board of Directors × × × × × × Mr.Independent Director Mr. S.Managing Director Mr.Ramani . Experienced & qualified professionals wholly devoted towards their key areas. J. BOBCAPS offers the entire spectrum of financial services that includes Initial Public Offerings. P.BOB Capital Markets Ltd.S. BOBCAPS is one of the Investment Banking Companies in India and is a SEBI registered Category I Investment Banker. BOBCAPS also undertakes advisory services on Securitisation and Structuring of Debts.Whole Time Director Mr.

UTI. Reliance.SERVICES:Investment Banking IPO / Rights Issue / FPO Mergers & Acquisition Private Placement of Debt / Equity Private Equity Advisory Corporate Advisory Services Project Appraisal / TEV Studies Debt Syndication Business Valuation Retail Broking Online Trading Call n Trade Applying IPOs Online Applying MFs Online × × × × × × × × × × × × × × × Institutional Broking Institutional Equity Broking Services Equity Research F & O Dealing and Sales × Mutual Fund Distribution BOB Capital Markets Ltd. . HDFC. (BOBCAPS). As a distributor we are empanelled with 28 SEBI Registered Mutual Funds in India including SBI. Fidelity. a wholly owned subsidiary of Bank of Baroda is into Mutual Fund Distribution and Advisory Services. and Franklin Templeton.

PERFORMANCE .

Equity Lead Manager to the Initial Public Offering of Issue Size INR 750 Million Lead Manager to the Lead Manager to the Rights Issue Size INR 180 Million Capital Issues .Recent Offerings Business Valuation Business Valuation for a crossover M&A Deal Project Appraisal and Valuation Valuation of shares Capital Issues . .Debt Arranged Issue of NCDs on Private Placement Basis worth INR 3250 Million Arranged Issue of NCDs on Private Placement basis worth INR 500 Million Arranged the Issue of various Bond series for Tier I and Tier II capital requirements aggregating INR 20 Billion from 20072009 Mergers & Acquisitions Advisor to the Takeover Deal.

2671 crore as on 31 March210 from Rs. The Bank came out with its Initial Public Offer (IPO) in August 20.43% Share Capital held by the Government of India.Sharma(Chartered Accountant Director) SHRI N. Presently 44. Union Bank is a Public Sector Unit with 55.C.57 % of Share Capital is presently held by Institutions. st st  Net Profit Increased by 27. 2002 and Follow on Public Offer in February 2006. Gulfam Mujibi(Part-time non-official Director) Shri B.6964 crore in the previous year. the bank also manages close to 395 networked ATMs. 8758 crore as on 31 March 10 as compared to Rs. SHANKAR (WORKMEN DIRECTOR) .M. st st March 10 as  Gross NPA level increased to Rs.1923 crore as on 31 March209.NAIR (Chairman & Managing Director) Shri S.47% and stood at 594 crore as on 31 compared to  466 crore crore in the previous year. The bank has earned a reputation for being techno-savvy--more than 600 branches of Bank are networked and powered with a centralized technology platform.Raman(Executive Director) Dr.76% and stood at Rs. st Financial performance(as on 31 march 10)  The Bank2s Net Worth increased by 25.Kalia(Executive Director) SHRI S. Board of Directors SHRI M.Union Bank of India has been around for more than 88 years.V. Individuals and Others.

Savings & Deposits.Retail Loans. Trade Finance. in April 2010. Abu Dhabi in UAE and Sydney. Payments) Corporate Banking(CMS. the Bank opened its 5 overseas representative office in London. Besides the Bank has a full fledged overseas branch in Hong Kong. The award was given away by the Hon2ble Governor of Maharastra. Shri K.Demat) NRI Banking(Remittance. U. E-Tax.Sankaranarayan. loans Syndication. The Bank is the process of setting up a Rep Office in Toronto. MSME Banking) Internet Banking(Account Information. The award was given away by Dr. The Bank already has 4 representative Offices in Shanghai.Products and Services Personal Banking (Accounts & Deposits. Financial & Non Financial enquiries) Award_s: The Bank was awarded the Gold Trophy and a certificate in the Elite Class for Excellence in Marketing & Brand Communication by Association of Business Communicators of India (ABCI) in March 2010.K. Beijing in PRC.Cards. Canada.Transfer of Funds/Bills/Limits/Currency. Australia. The Bank was awarded the prestigious BSkoch Challenger AwardC 2009 for excellence in capacity building through innovative concept of BVillage Knowledge CentreC as part of financial inclusion initiatives. . C Rangarajan. Insurance. Loan & Services. Economic advisor to the Prime Minister th As part of its global expansion initiatives.Insurance & Investment.

Cyril Shroff (managing partner of the law firm) . to life insurance. Mauritius and Singapore. C. The Group services around 6. to investment banking. Jayaram ( Executive Director) Mr. Dipak Gupta ( Executive Director) Mr. Dubai. Dipak Gupta (Executive Director) Dr. C Jayaram (Executive Director) Mr. the group caters to the financial needs of individuals and corporates. Anand Mahindra (Vice-Chairman and Managing Director) Mr. franchisees. Shivaji Dam (managing director of Kotak Mahindra Old Mutual Life Insurance Limited) Mr. Since the inception of the erstwhile Kotak Mahindra Finance Limited in 1985. From commercial banking.The Kotak Mahindra Group Kotak Mahindra is one of India's leading financial conglomerates. San Francisco. representative offices and satellite offices across cities and towns in India and offices in New York. Kotak (Executive Vice Chairman & Managing Director) Mr. Shankar Acharya (Non-Executive Part-time Chairman) Mr.5 million customer accounts. to stock broking. it has been a steady and confident journey leading to growth and success.100 crore and has a distribution network of branches. London. offering complete financial solutions that encompass every sphere of life. Uday S. 7. The group has a net worth of over Rs. to mutual funds. Kotak Group Products & Services: Senior Management: Mr.

2007 & 2006 Best Performing Equity Broker in India ± CNBC Financial Advisor Awards 2008 Avaya Customer Responsiveness Awards (2007 & 2006) in Financial Services Sector The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007 Euromoney Award (2007 & 2006) . Investments in IPO.Best Performing Equity Broker (National) for the year 09 Finance Asia Award (2009)-Best Brokerage Firm In India Best Brokerage Firm in India by Asiamoney in 2008.Largest Distributor of IPO's .Best Provider of Portfolio Management: Equities Euromoney Award (2005)-Best Equities House In India Finance Asia Award (2005)-Best Broker In India Finance Asia Award (2004). Act as a lead manager to several (IPO¶s) & help in Client in accessing the public & private equity market. Mutual funds Portfolio management service. Accolades : UTI MF ± CNBC TV18 Financial Advisor Awards . Reconstruction from a private company to a public limited company effective from June 13. Insurance. A subsidiary of Kotak Mahindra bank. 2300 crore of Assets Under Management (AUM) as of 31st March.Kotak Securities Kotak Securities Ltd.India's best Equity House Prime Ranking Award (2003-04). Services :stock broking through the branch and Internet. Kotak Securities Limited has Rs. 100 % subsidiary of Kotak Mahindra Bank is one of the oldest and largest broking firms in the Industry. Currency Derivatives. 2010. Large Presence: At present Kotak in 331 cities with 843 offices all over the country. It is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). 2003.

offering specialize services to banks. & corporate sector.Both Retail & HNIs. & have an edge in handling Private Placement issue. involving various types of industries. It is SEBI register with CAT I Merchant banker to carry on issue management (public. PSUs.CANRA BANK is also one of the leading merchant bankers in India. private placement). Local statutory bodies. Agriculture Consultancy Services Corporate Advisory Services Merger & Acquisition Share valuation & Buy back Assignment. Debt Issue management. banks . right. It have associated with issue ranging from 1 crore to 1500 crore. IPO funding Security Trustee Services. Underwriting Consoltancy. Corporate advisory services. SPECTROM of Services:× × × × × × × × × × Equity Issue (Public/ Right) management. statutory Bodies etc. and State owned corporation. . Private Placement Project appraisal Monitoring agency assignments.

The Primary Dealer activity of the Company was taken over by the parent Bank in February. assure prompt settlement. 2007 and the Company is focusing on capital market related activities mainly into equity broking and distribution of Financial Products. The name of the Company has been changed as µCanara Bank Securities Ltd. (GSTCL)¶ with a paid-up capital of Rs. PRINCIPAL OBJECTIVES × × To provide a viable and efficient institutional platform for competitive trading in equities. To provide Trading Convenience by way of: Efficient and Speedy On-Line Service  Prompt Settlement  Transparency in operation .100 Crores.About PROMOTERS/ACTIVITY The Company. This facilitates seamless trading in stock market by investor clients of the Bank at their comfort and convenience. Liquidity to the instrument and transparency in dealing. The On Line Trading (OLT) in Equity and FNO is a product added by CBSL to Financial Super Market of Canara Bank. (CBSL)¶ in 2009. To create an active secondary market for Equities. To develop a Retail Equity market with broader investor base by offering enhanced trading facility to the equity instruments and hassle-free & speedy × × service using state of the art technology in the market. a Subsidiary of Canara Bank was incorporated and accredited as a Primary Dealer (PD) in 1996 in the name of µGilt Securities Trading Corporation Limited.

BOARD OF DIRECTORS × × × × × × × Shri A C Mahajan . × Trading (Front Office) × Settlement accounting and Reconciliation(Back Office and Accounting)and × Monitoring and Control (Middle Office) Similarly. assisted by the executives heading the departments and supported by competent and experienced staff.Vice Chairman (Executive Director of Canara Bank) Shri P N Murthy .Director (Retd Executive Director of Allahabad Bank) Shri K R Rao .Managing Director (Deputy General Manager of Canara Bank) BANKERS TO THE COMPANY × Canara Bank AUDITORS TO THE COMPANY × × M/S Ghalla & Bhansali M/s A J Shah & Co.Director (General Manager of Canara Bank) Shri D S Anandamurthy .Director (Chartered Accountant-with vast experience in Capital Market) Shri K Krishna Rai . Mumbai (Internal Auditors) PRINCIPAL EXECUTIVES × × × Shri K R Rao (Managing Director Shri N S Rao (General Manager ) ) Shri K Ganesh Kamath (General Manager ) COMPANY SECRETARY × Shri S Mutthu .Director (General Manager of Canara Bank) Shri D S R Murthy . there is a separation of transactions relating to Proprietary trads. who are on deputation from Canara Bank.Chairman (Chairman and Managing Director of Canara Bank) Shri H S Upendra Kamath . Day to day affairs are overseen by the Managing Director. The Company is Board managed. Institutional accounts and Constituents¶ accounts.ORGANIATIONAL SETUP As per SEBI guidelines the Company has functional separation for.

(IDBI Capital) is a wholly owned subsidiary of IDBI Bank Ltd and is a leading Investment Banking & Securities Company.IDBI Capital Market Services Ltd.Institutional & Retail Distribution of Financial Products Debt Placement and Underwriting Fund Management (Managing Clients' Assets-Pension/PF Fund Managers)  Research Group           IDBI Capital is highly regarded for safety and trust and enjoys a credit rating of ³AAA´ by CARE for its medium-term borrowings and P1+ by ICRA for its shortterm borrowings.. The range of services include :- Investment Banking Capital Market Products Private Equity Corporate Advisory Services Mergers & Acquisitions Project Appraisals & Debt Syndication Stock Broking . . Institutional and Individual clients. IDBI Capital offers a full suite of products and services to Corporates.

in 2000 June 2002 October 2004 June 2006 January 2006 September 2006 September 2007 March 2007 May 2008 January IDBI Capital bags CNBC TV18 'Best National Financial Advisor-Institutional' award.idbipaisabuilder.Milestones 1995 March 1995 July 1996 October 1996 December 1996 1998 April 1999 February 1999 November 2002 March Commenced Equity Broking on NSE CM segment Built agent Distribution Network across the country Commenced Debt Broking on NSE WDM segment Started operations as a Depository Participant Started to act as Arranger to Privately Placed Bond issues Commenced operations as a Portfolio Manager Acquired membership of BSE. Mumbai Started operations as a Primary Dealer Achieved an outright secondary market turnover exceeding Rs. IDBI Capital ties up with Oriental Bank of Commerce IDBI Capital ties up with Karur Vysya Bank (KVB) IDBI Capital bags CNBC TV18's prestigious National Financial Advisor Award IDBI Capital ties up with Union Bank of India 2008 March .100000 crore in G-Secs Acquired Derivatives memberships of BSE and NSE Commenced trading in Interest Rate Swaps Commenced Merchant Banking & Corporate Advisory Services Launched the online investing portal ± www. IDBI Capital ties up with Punjab National Bank and Bank of Rajasthan Bank.

The Company is a SEBI registered Portfolio Manager and manage its Client¶s assets under both discretionary and nondiscretionary mandates. Regulatory Approval IDBI Capital is a registered Portfolio Manager with Securities and Exchange Board of India (SEBI) since 1998 and is authorised to undertake Funds Management activities (Debt & Equity) for clients. valid till the year 2010. which are significantly higher than the benchmark. These services are provided to various public and private sector undertakings and their provident. banks and corporates for their investment in Debt. SEBI Regisration No. the Company is also audited by Comptroller and Auditor General (CAG) office and follows transparent practices. retirement benefit and surplus funds. The Company¶s client base includes leading pension and provident funds in the country. Its services include managing Client Assets--Pension & Provident Funds. ISO Certification 9001:2000 Keeping in view the importance of standardized processes and service levels. . Surplus fund Management. 1993. (ICMS) is a leading Fund Manager in the country for Provident. pension. IDBI capital has been advising institutions. of IDBI Capital is INP000000209. Being a public sector. Pension and Retirement Benefit Funds. and is the only company to have done so in this sector. Equity Portfolio Management and Mutual Fund Advisory. The funds have continuously yielded superior returns. the Company has gone in for ISO Certification for Fund Management. These activities would be governed by Securities and Exchange Board of India (Portfolio Managers) Rules and Regulations.Fund Management IDBI Capital Market Services Ltd. Mutual Funds and Equities over several years.

Service¶s:- Retail Broking & Distribution Online Investing IPO Distribution Capital Markets IPO / FPO / Right Issues TakeOver Buyback of Securities Qualified Institutional Placement Private Equity Investment Banking Financial Advisory Project Advisory Corporate Advisory Mergers & Acquistions Strategic Advisory Institutional Broking & Distribution Equity Sales & Dealing Equity Research Mutual Fund Sales & Dealing Mutual Fund Research .

25 million to $2.S and European investors in conjunction with a U.S public company with the prestige and capability to raise money from U.25%) continues to be a substantial hindrance. India¶s strength in Information Technology sector is well known. Finally.5 million range since April 2007. Debt Financing is not the answer for SME`s.Present scenario of Indian Merchant Banking U. Focus on small and medium enterprises (SMEs). only 52 companies have been able to . is a pioneer firm leading the charge for Indian Companies to obtain stock market listings in the U. The avg.75% to 13. SMEs are dynamic force in India fall under this category.S public company with market listing. This turns a fast growing Indian company into U.5 million to $125 million in March 2007 fiscal year. driven by approximately three million SME`s in sectors ranging from auto components to industrial goods. but it is India¶s fast growing manufacturing sector. Meanwhile smaller Indian companies seeking to raise funds of less than that amount have found it increasingly difficult to raise funds through Indian Stock Markets listings.S and European institutional investors. size of Indian IPO rose to approximately $100 million in 2008-09. No companies have raised money in the $1. For vast majority of Indian SME`s. the ability to raise debt financing outside India (typically referred to as External Commercial Borrowings (ECBs) is strictly regulated by RBI. that is rapidly India a leading global manufacturing hub. the high domestic interest rate regime (prime rate of 12.S Stock Market Listings of Fast. Furthermore.Growing Indian Companies: An innovative financing Option New York. According to SEBI only 104 companies raised capital in the range of $2. Feb 17 08 /PR Newswire/ Emissary Capital. The Indian stock markets including the BSE & NSE have essentially ignored robust Indian SMEs. There seems to an across the board consensus that Indian SME`s have not been able to fully tap their potential and keep pace with India¶s growth because of their inability to access greater sources of financing. LLC A merchant bank based in New York City and specializing in Indian Companies. No IPO boom for Indian SMEs in Indian stock markets.

There are few smaller Indian IPOs because Indian merchant bankers prefer to work on bigger IPOs that earn them bigger. Emissary Capital Ltd.raise funds in the range of $2. face stiff competition from India¶s two major stock exchanges BSE & NSE. as the work required for a small IPO compared to a large IPO is relatively the same. Also the regional stock exchanges. .S stock market listings as well as identifying and advising on mergers & acquisitions transactions for such companies.5 million to $125 million in March 2008 fiscal year. where the majority of SMEs would list themselves if possible. Is a full service merchant banking firm which specializes in assisting fast growing Indian companies in obtaining financing and U.

After comparison it would be find out which category has more growth potential in present scenario as well as in future.FOCUS OF THE STUDY The main Banking focus of the study would be on functioning of the Merchant companies. . The study would have information and details of Merchant Banking of public sector and private sector companies and then an analysis will be done on the collected information and finally a comparison between these two categories will be done.

New players are entering in this field day by day. . Some companies have built their strong image and some are still in process to leave their mark in the international market. So many companies in India are trying their hands in this field. Merchant Banking has emerged as an indispensable financial advisory package.CONCEPTUALIZATION OF THE STUDY Amidst the swift changes sweeping the financial world. Merchant banking is a service-oriented function that transfers capital from those who own to those who can use it. Merchant Banking in India has a great demand over the globe. They try to identify the needs of the investors & corporate sector & advice entrepreneurs what to do to be successful.

LITERATURE REVIEW .

and average month. These fees include things like set-up. Okay so you want to accept credit cards from your customers. a type of Bank Holding Company created by the act.REVIEW OF EXISTING LITERATURE There are no. there are a few things to consider when choosing a credit card processing provider. merchant banking is gaining acceptance in the United States. bad. or internet shopping operation. and are interested in establishing a merchant account. A banque d'affaire is a French merchant bank. Merchant banking is a fee based business. and then compare the variable fees that may differ depending on the company you deal with. where the bank assumes market risk but no long-term credit risk. A common form of banking in Europe. mail order outlet. A Few of literature are Form of banking where the bank arranges credit financing. which has more powers than its British counterpart. Once you have determined what your business will be charged for its merchant account. but does not hold the loans in its investment portfolio to maturity. and may be negotiable based on your unique circumstances. First of all. A merchant bank invests its own capital in leveraged buyouts. and monthly minimum. you should make a list of several providers that offer the features you want. The Gramm-Leach-Bliley Act allows financial holding companies. . of study Have Been done on mercent Banking. as more banks originate commercial loans and then sell them to investors rather than hold the loans as portfolio investments. it¶s often a good idea to do a few sample calculations to work out your total credit card processing costs during a good. corporate acquisitions. cancellation. and other structured finance transactions. Whether you own a brick-and-mortar retail store. to engage in merchant banking activities.

including small print and detailed terms. you should read and double-check the contract. Financial services firm India Infoline on Wednesday said its wholly owned subsidiary. equity placements. ³This will enable the company to carry out the entire range of merchant banking activities ranging from public issue management to advisory services and underwriting of issues´ a company release said here. has received a category 1 merchant banking licence from the Securities and Exchange Board of India. IPO¶s & high yield debt. pvt. Ajit Menon. The leading investment banks are targeting the large companies and the small and medium-sized companies bracket is a good untapped growth opportunity. The company recently acquired Marchmont Capital Advisors Ltd and entered into an alliance with Marchmont International for exclusive services and non-compete in India.Finally. said the company would provide focused corporate finance advisory for SME`s in the areas of mergers & acquisitions. minimums. . Senior Vice ±President and Head-Investment Banking. and other details. Don¶t sign anything until you are confident that you understand all the fees. Mr. It¶s important to keep in mind that merchant account providers won¶t go over every single point with every single customer. India Infoline. India securities Pvt. and that it is ultimately your responsibility to read and understand the terms. ³We see specific opportunities in cross border M&A that would bring in strategic benefits and growth opportunities for companies in the SME sector and we are already seeing good traction in this area´ India Infoline expects a significant number of small and medium-sized companies to be turning to the capital markets and becoming involved in mergers and acquisitions. Ltd. termination clauses.

Objective &Methodology .

× To find out the growth potential of the Merchant Banking public & private sector companies. × To compare the public & private sector company engaged in providing merchant banking services on various grounds. .OBJECTIVES OF THE STUDY × To develop the ability to study the functioning of Merchant Banking in India & learn & apply multidisciplinary concepts. tools & techniques to solve vital problems. × To familiarize with the various services provided by Merchant Bankers.

Here in this study universe and survey population sampling would be all the public  & private sector companies of India engaged in Merchant Banking operations. For carrying out my research work I would follow Exploratory cum Descriptive  research design. Universe and Survey Population Sampling All the items under consideration in any field of inquiry constitute a ³universe´ or ³population´. Sample Size Sample size would be 7-8 public & private sector merchant banking companies.RESEARCH METHODOLOGY RESEARCH DESIGN:  A research design is an arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy ion procedure. .  A sample design is a definite plan for obtaining a sample from a given  population.

It has been already analyzed by some one else earlier and is derived from that source.Methods of Data Collection  Primary Data usually consists of the data that are collected afresh for the first time and thus is original in character. Secondary Data that used in the study are Newspapers Websites Books Analysis Pattern × Statistical Tools. Primary Data that used in the study Questionnaire In my Questionnaire There are 10 Questions  Secondary Data consists of data that is collected from some existing literature.graphs & charts × Cross Tabulation Of Data .

Data Presentation & Analysis .

Analysis & Interpretation Q 1 Do you take any financial services from bank? Sr. 45% respondents have taken Financial Service and rest 55% respondents have not taken the Financial Service. No. 36 44 80 Percentage 45 55 GRAPH Take i ancial ervice 45% ¢ 55% 1Y ¡ ¤ £ Interpretation Out of total respondents. . 1 2 Take Financial Service Yes No Total Nos.

40 •¦ s 2 No Interpretation Out of total respondents. 60 60 1 50 40 30 20 10 0 Nos. 1 2 Know about Merchant Yes No Total Nos. 40% respondents Know about merchant banking and rest 60% respondents don¶t know about merchant banking. 32 48 80 Percentage 40 60 Know about erchant © 2 ¨ . . 1 • ¦§ . No.Q 2 Do you Know about Merchant Banking? Sr.

/ e Interpretation Out of total respondents. No. 1 2 Satisfied Yes No Total Nos.25 100 60 50 40 30 20 10 0 .75% respondents Satisfied and rest 60% respondents don¶t Satisfied. 43. 56.75 56.0 5 1 1 es 2 No Per ent .25 . . 43./ Per ent e./ Per ent e.Q 3 Are you satisfied with the services provided by your bank? Sr. 35 45 80 Percentage 43.

. of companies takes financial services from SBI. no 1 2 3 4 5 Bank ICICI SBI PNB BOI Other Percentage 20 35 20 15 10 40 35 30 icici 25 20 15 10 5 0 icici sbi pnb boi any ot2 er sbi pnb boi any ot2 er Interpretation  Large no.Q4 Are you satisfied with services offered by banks? Sr.

50% respondents Say Good.no 1 2 3 Position Good Normal Bad Total Percentage 50 35 15 100 Position Bad 3 15% Good 1 50% 1 3 ood 2 Nor4 al 3 5 ad Nor 2 35% al Interpretation Out of total respondents.Q5 What is the position of Merchant Banking in Private Sector? sr. . 35% Say Normal and rest 15% respondents say bad.

no 1 2 3 Position Good Normal Bad Total Percentage 40 55 5 100 Position 56 406 1 ood 2 Nor!al 556 3 "ad Interpretation Out of total respondents. 40% respondents Say Good.Q6 What is the position of Merchant Banking in Public Sector? sr. . 55% Say Normal and rest 5% respondents say bad.

18 0 50 12 80 Percentage 22.5 0 62.No. 3. 1. 2. gold land paper third person bank sec.D. gold land paper third person . 4.) Gold Land Papers Third person security Total: Nos.5 15 100 50 45 40 35 30 25 20 15 10 5 0 bank sec. Type of Security Bank Security (F.Q 7 What type of security have you deposited/you will deposit with the banks ? Sr.

Percentage 1. 2. 80% respondents Satisfied and rest 20% respondents don¶t Satisfied.Q8 Are you satisfied by Security margin of bank? Sr. . Yes No Total: 64 16 80 80 20 100 70 60 50 40 Yes 30 20 10 0 Yes No No Interpretation Out of total respondents. Satisfaction by Security Margin Nos.No.

Q9 Are you satisfied with timely services provide by banks? Depends on M. Interpretation Out of total respondents. 1 2 Depends on M.B 56 1 es 2 No 1 24 2 No es Nos. . 56 24 80 Percentage 70 30 100 Sr. No. 75% respondents Say that They are timely heared and rest 25% say that They are not timely served by merchant banking.B Yes No Total Nos.

No. 1 2 Difference Yes No Total Nos.Q10 Will it differ from investment banks? Sr.75% respondents Think that It is differ and rest 25% respondents don¶t Think so. 60 20 80 Percentage 75 25 100 60 50 40 30 20 10 0 es No Yes No Interpretation Out of total respondents. .

Market Share Public Sector= 66% Private Sector= 34% 70% 60% 50% 40% 30% 20% 10% 0% public sector private sector Series1 . Public sector merchant banking companies facing stiff competition from the private sector companies.COMPARISION BETWEEN PUBLIC & PRIVATE SECTORS Public Sector is the pioneer in providing Merchant Banking services in India. But due to liberalization of economy the scenario has changed many private Merchant Banking companies have entered in the industry since then.

Findings & Conclusions .

. × Multiple revenue growth initiatives are in place with detailed and concrete action plans. × Growth is controlled by a sound Risk Management System and disciplined cost management. × SMEs are facing stiff competition from large scale companies.Conclusion × Longstanding client relationships × Strong positions in high-growth client and product niches. × Small from & Medium scale enterprises SMEs need immediate attention merchant bankers to get access to finance. and with rigorous follow-up mechanisms.

LIMITATIONS OF THE STUDY × Due to paucity of time only limited information can be collected. . × Sample size to be taken may not be the true representative of the population. × Study would be confined to only 7-8 public & private sector merchant banking companies. × There can be a possibility of ³individual biasness´ on the part of respondents.

Chapter 6 .

in .co.google.sebi.com www.asialaw.pnbindia.com http://www.BIBLIGRAPHY i.html http://www.in http://unionbankofindia.com www. iii.kotaksecurities.wikipedia. Gupta. KOTHARI Financial Institutions & Market By Shashi K. Nisha Aggarwal INTERNET www.sbicaps.answer.canmoney.com http://www.com/news www. iv.com http://www. ii.com http://www.com www.gov.in http://www. NOTES RESEARCH METHODOLOGY BY C.icicisecurities.emissarycapital.R.bobcapitalmarkets.in/subsidiaries http://www.com/Article/1988860/Merchant-Banking.

Are you satisfied with the services provided by your bank? (a) Yes ( ) (b) No ( ) ( ) (b) No ) ( ) (b) NO ( 4. Do you know about Merchant Banking? (a) Yes ( 3.Questionnaire Respondent¶s Profile Name Age Gender :_______________ :_______________ :_______________ Occupation :_______________ 1. What is the position of Merchant Banking in Private Sector? (a) Good (c) Bad ( ( ) ) (b) Normal ( ) . Which bank provide you maximum services? (a) ICICI (c) PNB ( ( ) ) (b) SBI (d) BOI ( ( ) ) (e) OTHER(specify) 5. Do you take any financial services from bank? (a) Yes ) 2.

What is the position of Merchant Banking in Public Sector? (a) Good (c) Bad ( ( ) ) (b) Normal ( ) 7. Are you ( ) 10. Will it differ from investment banks? (a) Yes ( ) (b) No ( ) .6. Non-financial institution depends on satisfied? (a) Yes ( ) (b) No merchant banking. What type of security have you deposited/you will deposit with the banks (a)Bank security (c) Land paper ( ( ) ) (b) Gold (d) Third party security ( ( ) ) 8. Are you satisfied by Security margin of bank? (a) Yes ( ) (b) No ( ) 9.