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EXECUTIVE SUMMARY

Investment banking includes a wide variety of activities, including underwriting,
selling, and trading securities, providing financial advisory services, and managing
assets. Investment banks cater to a diverse group of stakeholders – companies,
governments, non-profit institutions, and individuals – and help them raise funds on
the capital market. They perform the following major functions for their customers:
 Serve as trading intermediaries for clients
 Lend and invest banks’ assets
 Provide advice on mergers, acquisitions, and other financial transactions
 Research and develop opinions on securities, markets, and economies
 Issue, buy, sell, and trade stocks and bonds
 Manage investment portfolios
Investment banks once contrasted sharply with commercial banks, where
people mainly deposited their money and sought commercial and retail loans. In
recent years, though, the two types of structures have become increasingly similar;
commercial banks now offer more investment banking services as they attempt to
corner the market by presenting themselves as one-stop shops.
Investment banks do differ from brokerages and broker-dealers, though,
even though those three entities are often thought of as one and the same. A brokerage
firm takes a commission for assisting in the purchase and sale of stocks, bonds, and
mutual funds. A broker-dealer executes similar functions, but it also trades for its own
account. An investment bank actually is a broker-dealer that provides corporations
with financial services, such as assistance with initial public offerings, merger and
acquisitions advice, and strategic planning.

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INTRODUCTION

Investment banking is a particular form of banking which finances capital
requirements of an enterprise. Investment banking assists as it performs IPOs, private
placement and bond offerings, acts as broker and carries through mergers and
acquisitions. Investment banking is a field of banking that aids companies in
acquiring funds. In addition to the acquisition of new funds, investment banking also
offers advice for a wide range of transactions a company might engage in.

Traditionally, banks either engaged in commercial banking or investment banking. In
commercial banking, the institution collects deposits from clients and gives direct
loans to businesses and individuals.

Through investment banking, an institution generates funds in two different ways.
They may draw on public funds through the capital market by selling stock in their
company, and they may also seek out venture capital or private equity in exchange for
a stake in their company.

An investment banking firm also does a large amount of consulting. Investment
bankers give companies advice on mergers and acquisitions, for example. They also
track the market in order to give advice on when to make public offerings and how
best to manage the business' public assets. Some of the consultative activities
investment banking firms engage in overlap with those of a private brokerage, as they
will often give buy-and-sell advice to the companies they represent.

The line between investment banking and other forms of banking has blurred in recent
years, as deregulation allows banking institutions to take on more and more sectors.
With the advent of mega-banks which operate at a number of levels, many of the
services often associated with investment banking are being made available to clients
who would otherwise be too small to make their business profitable.

At a very macro level, ‘Investment Banking’ as term suggests, is concerned
with the primary function of assisting the capital market in its function of
capital intermediation, i.e., the movement of financial resources from those
who have them (the Investors), to those who need to make use of them for
generating GDP (the Issuers). Banking and financial institution on the one

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hand and the capital market on the other are the two broad platforms of institutional that
investment for capital flows in economy. Therefore, it could be inferred that investment
banks are those institutions that are counterparts of banks in the capital markets in the
function of intermediation in the resource allocation.

Nevertheless, it would be unfair to conclude so, as that would confine investment banking
to very narrow sphere of its activities in the modern world of high finance. Over the
decades, backed by evolution and also fuelled by recent technologies developments, an
investment banking has transformed repeatedly to suit the needs of the finance community
and thus become one of the most vibrant and exciting segment
of financial services. Investment bankers have always enjoyed celebrity
status, but at times, they have paid the price for the price for excessive flamboyance as
well.

In the words of John F. Marshall and M.E. Eills, “investment banking is what investment
banks do”. This definition can be explained in the context of how investment banks have
evolved in their functionality and how history and regulatory intervention have shaped
such an evolution. Much of investment banking in its present
form, thus owes its origins to the financial markets in USA, due o which,
American investment banks have banks have been leaders in the American
and Euro markets as well. Therefore, the term ‘investment banking’ can
arguably be said to be of American origin.

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CHAPTER 01

WHAT IS INVESTMENT BANKING ?

 A person or organization sometimes acts as an underwriter or mediator for corporations
and municipalities issuing securities.
 Most of them also preserve broker-dealer operations to maintain markets for formerly
issued securities and suggest advisory services to investors.
 Investment banking also has a large role in facilitating mergers and acquisition, private
equity placements and corporate restructuring.

Definition:

An individual or institution, which acts as an underwriter or agent for corporations and
municipalities issuing securities. Most also maintain broker/dealer operations, maintain
markets for previously issued securities, and offer advisory services to investors. Investment
banks also have a large role in facilitating mergers and acquisitions, private equity
placements and corporate restructuring. Unlike traditional banks, investment banks do not
accept deposits from and provide loans to individuals. Also called investment banker.”

Concept of Investment Bank:

The banking scenario in India is itself huge, covering the different facets of the
economy. By and large, investment banks in India are itself an institution which
generates funds in two different ways. The first manner in which it works is by
drawing public funds via the capital market by way of selling stock in their company.
The other way in which it operates is to seek for venture capital or private equity, as a
substitute for a stake in their company.

Investment Banks:

An investment bank is a financial institution that assists corporations and
governments in raising capital by underwriting and acting as the agent in the issuance
of securities. An investment bank also assists companies involved in mergers and
acquisitions, divestitures, etc. Further it provides ancillary services such as market
making and the trading of derivatives, fixed income instruments, foreign exchange,
commodity, and equity securities.

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Unlike commercial banks and retail banks, investment banks do not take
deposits. Trading securities for cash or securities (i.e., facilitating transactions,
market-making), or the promotion of securities (i.e., underwriting, research, etc.) was
referred to as the “sell side”. Dealing with the pension funds, mutual funds, hedge
funds, and the investing public who consumed the products and services of the sell-
side in order to maximize their return on investment constitutes the “buy side”. Many
firms have buy and sell side components.
Investment banks help companies and governments and their agencies to raise
money by issuing and selling securities in the primary market. They assist public and
private corporations in raising funds in the capital markets (both equity and debt).

Investment banks also act as intermediaries in trading for clients. Investment
banks differ from commercial banks, which take deposits and make
commercial and retail loans. In recent years, however, the lines between the two types of
structures have blurred, especially as commercial banks have
offered more investment banking services. Investment banks may also differ from
brokerages, which in general assist in the purchase and sale of stocks, bonds, and mutual
funds. However some firms operate as both brokerages and investment banks; this
includes some of the best known financial services firms in the world.

Few facts about Investment Banking

 Unlike traditional banks, investment banks do not accept deposits from and provide
loans to individuals also called investment banker.
 Investment banks help companies and governments (or their agencies) raise money by
issuing and selling securities in the capital market (both equity and debt).
 Almost all investment banks also offer strategic advisory services for mergers,
acquisition, divestiture or other financial services for clients, such as:
 trading of derivatives
 fixed income
 foreign exchange
 commodity
 Equity security.

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government and corporations. health care. facilitating mergers and acquisitions or brokerage services for institutions. Investment banks play a very crucial role in market transactions on behalf of. consumer products and various such segments are provided assistance by investment banking services. credit counseling. An investment bank is a type of financial intermediary that performs a variety of functions such as underwriting. an investment bank also deals in the securities. or for private and public investors. 6 . market-making).  The investing public who use the goods and services of the sell-side with the intention of make best use of their return on investment. research. Industries from diverse sectors like media and telecommunications. Trading securities for hard cash or securities (i.  mutual funds. There are a number of investment banks that also provide highly professional services in assisting their clients with industrial know-how on various parameters. provided it is managed in an innovative and professional environment.  Many firms have both buy and sell side mechanism. Basics of Investment Banking: The banking sector is one of the biggest contributors to a nation’s economy. or the endorsement of securities (i.. industry. facilitating dealings.  hedge funds.  On the other hand the “buy side” constitutes :  the pension fund.e. The primary source of income for investment bankers is the commissions. etc. The work of an investment bank begins right from the counseling before the underwriting sessions. Investment banking is one rapidly growing form of banking. underwriting.. fees and gain margins on transactions provided for the above mentioned institutions.) is referred to as the “sell side”. and stretches right till the securities are properly handled and distributed. trading services. Along with these.e. financial engineering and merchant banking. real estate. finance.

investment banking is not restricted in its scope to a few regions of the world. Middle East. check its overuse. Africa and Asia. Good investment banking involves procedures to maintain and upgrade the quality of services and keep a close watch on the emerging trends in the market. This has been observed majorly of late. where their customer’s money can be invested. along with innovative fluctuations. The investment banking market was increasing leaps and bounds. New York and Tokyo. It caters to a global community which makes it highly sensitive to global ups and downs. There is no demarcating line between the investment banking and other forms of banking in India. there is a direct familiarization of both the investor and the borrower. The US is the biggest market for investment banks. For instance. assets and so on with a bank. Role of an Investment Bank: The major work of investment banks includes a lot of consulting. All banks nowadays want 7 . However. until the present recession struck. The role of an investment bank as a mediator is to directly familiarize the nature of the investment and the entity being invested in. An investment bank can also assist investment in the financial market. and come up with a detailed analysis of credit risks. people deposit finances in the form of cash. and also to merge or acquire new entities. The global hubs of investment banking are a few economically sound centers like London. Investment banks provide companies with expert guidance and formulate strategies on their behalf for disinvestment. It also incorporates risk management services in order to streamline the flow of capital. followed by Europe. they offer advices on mergers and acquisitions to companies. The role that an investment bank plays sometimes gets overlapped with that of a private brokerage house. This means that an individual or institutional investor has an option to choose his type of investment or division of investment into any given entity looking out for funds. The bank in turn can lend to a borrower under some standard norms to utilize in his own way. The usual advice of buying and selling is also given by investment banks. In case of conventional banking. In the case of investment banking. Banks all over the world are trying to recoup the losses.

Other services include acting as intermediaries in trading for clients.  Investment banking provides financial advice to investors and serves them by assisting in purchasing securities. to those who need to make use of them for producing GDP (the issuers). Functions of Investment Banking: Investment banks have multilateral functions to perform. However the dividing line between the two fraternal twins has become flimsy with loans and securities becoming almost substitutable ways of raising funds. At the macro level.  Small firms providing services of investment banking are called boutiques. the movement of financial resources from those who have them (the investors). investment banks have always suited the needs of the finance community and thus become one of the most vibrant and exciting segment of financial services.  Investment banking differs from commercial banking in the sense that they don’t accept deposits and grant retail loans. debt market activity and merger and acquisitions (M&A) activity.e. guarantee by standby underwriting or best efforts selling and foreign exchange management. managing financial assets and trading securities. investment banking is related with the primary function of assisting the capital market in its function of capital intermediation. Globally investment banks handle significant fund-based business of their own in the capital market along with their non-fund service portfolio which is offered to the clients. These mainly specialize in bond trading. All these activities are broadly segmented across three platforms – equity market activity. Some of the most important functions of investment banking can be jot down as follows:  Investment banking help public and private corporations in issuing securities in the primary market. Over the decades. advising for mergers and acquisitions. i.. 8 . providing technical analysis or program trading.to provide their customers the best of services and create a niche for themselves and that is why apart from investment banks. all other banks too are aiming at making it big.

9 . and is vitally interested in seeing the transaction close. Although large corporations often have sophisticated finance and corporate development departments provide objectivity. Some criteria to consider include:  Services Offered: For all functions except sales and trading. What to Look For In an Investment Bank: Investment banking is a service business. assistance with due diligence. Generally only large client firms will get this type of service from the major Wall Street investment banks. the services should go well beyond simply making introductions. For example. or “brokering” a transaction. preparation of relevant documentation such as an offering memorandum or presentation to the Board of Directors. a valuable contact network. companies with less than about $100 million in revenues are better served by smaller investment banks. A quality investment-banking firm can provide the services.Who needs an Investment Bank? Any firm contemplating a significant transaction can benefit from the advice of an investment bank. Most small to medium sized companies do not have a large in-house staff. and in a financial transaction may be at a disadvantage versus larger competitors. a valuable contact network. Most small to medium sized companies do not have a large in-house staff. A quality investment banking firm can provide the services required to initiate and execute a major transaction. and in a financial transaction may be at a disadvantage versus larger competitors. allows for efficient use of client personnel. negotiating the terms of the transaction. and is vitally interested in seeing the transaction close. thereby empowering small to medium sized companies with financial and transaction experience without the addition of permanent overhead. an investment bank provides objectivity. most projects will include detailed industry and financial analysis. and the client should expect top-notch service from the investment banking firm. allows for efficient use of client personnel.

the firm must have a demonstrated record of closing transactions. for example when bidding on a company that is for sale. 10 . After the transaction. senior members of the investment banking firm will be active in the project on a day-to-day basis. The investment bank should have a wide network of relevant contacts.  Ongoing Support: Having worked on a transaction for your company. Depending on the type of transaction. It is important to utilize a fee structure that aligns the investment bank’s incentive with your own. accounting.  Record of Success: Although no reputable investment bank will guarantee success. an investment bank will charge an initial retainer fee. it may be preferable to work with an investment bank that has some background in your specific industry segment. investment banking projects have very specific deadlines. and generally assisting in all phases of the project to ensure successful completion. The investment bank must be willing and able to put the right people on the project and work diligently to meet critical deadlines. which may be one-time or monthly. the investment bank will be intimately familiar with your business.coordinating legal. and other advisors.  Ability to Work Quickly: Often. such as potential investors or companies that could be approached for acquisition.  Fee Structure: Generally.  Experience: It extremely important to make sure that experienced. a good investment bank should become a trusted business advisor that can be called upon informally for advice and support on an ongoing basis. with the majority of the fee contingent upon successful completion of the transaction.

and generally not providers of capital. rather than on the day-to-day details of the transaction. At the same time. 11 . knowing that the transaction is being handled by individuals with experience in executing similar projects. some executives elect to execute transactions without an investment bank in order to avoid the fees. Because investment banks are intermediaries. that the project is completed in an efficient time frame. an experienced. and with terms that provide maximum value to the client. The investment banker has a vested interest in making sure the transaction closes. quality investment bank adds significant cant value to a transaction and can pay for its fee many times over. However. the client is able to focus on running the business.

done by a special set of traders who do not interface with clients and through Principal Risk. risk undertaken by a trader after he or she buys or sells a product to a client and does not hedge his or her total exposure.CHAPTER 02 Organizational Structure and Core of an Investment Bank Organizational Structure of an Investment Bank Main Activities and Units The primary function of an investment bank is buying and selling products both on behalf of the bank's clients and also for the bank itself. Investment banks offer services to both corporations issuing securities and investors buying securities. the responsible investment banker offers protection against unsafe securities. The corporations do not have to spend on resources with which it is not equipped. respectively. Therefore. For corporations investment bankers offer information on when and how to place their securities in the market. The offering of a few bad issues can cause serious loss to its reputation. Banks undertake risk through proprietary trading. both sell side and buy side. While large full-service investment banks offer all of the lines of businesses. An investment bank is split into the so-called front office. To the investor. Banks seek to maximize profitability for a given amount of risk on their balance sheet. middle office. Core Investment Banking Activities Front Office:  Investment banking is the traditional aspect of the investment banks which also involves helping customers raise funds in the capital markets and giving advice on M&A's aka mergers and acquisitions. and hence loss of business. Investment banking may involve 12 . and back office. investment bankers play a very important role in issuing new security offerings. smaller sell side investment firms such as boutique investment banks and small broker-dealers will focus on investment banking and sales/trading/research.

Industry coverage groups focus on a specific industry such as healthcare. industrials. Ranging from derivatives to specific industries. The investment banking division (IBD) is generally divided into industry coverage and product coverage groups. and its advisory group is often termed mergers and acquisitions (M&A). and investment bankers by covering their clients. thereby bringing in revenue for the firm. or technology. the direction it would like to take in terms of its proprietary and flow positions. Strategists advise external as well as internal clients on the strategies that can be adopted in various markets.  Sales and trading: On behalf of the bank and its clients. In market making. strategists place companies and industries in a quantitative framework with full consideration of the macroeconomic scene. and maintain relationships with corporations within the industry to bring in business for a bank. 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. Sales is the term for the investment banks sales force. Another term for the investment banking division is corporate finance. the primary function of a large investment bank is buying and selling products. Other businesses that an investment bank may be involved in: 13 . subscribing investors to a security issuance. Research also serves outside clients with investment advice in the hopes that these clients will execute suggested trade ideas through the Sales & Trading division of the bank. While the research division may or may not generate revenue. often with "buy" or "sell" ratings. whose primary job is to call on institutional and high-net-worth investors to suggest trading ideas and take orders. as well as the way structures create new products. or negotiating with a merger target. traders will buy and sell financial products with the goal of making an incremental amount of money on each trade. This strategy often affects the way the firm will operate in the market. coordinating with bidders. the suggestions salespersons give to clients. its resources are used to assist traders in trading.  Research is the division which reviews companies and writes reports about their prospects. the sales force in suggesting ideas to customers.

 Corporate strategy. Investors may be institutions (insurance companies. Another key Middle Office role is to ensure that the above mentioned economic risks are captured accurately. Global transaction banking is the division which provides cash management. pension funds. mutual funds).) or private investors (both directly via investment contracts and more commonly via collective investment schemes e. to meet specified investment goals for the benefit of the investors.  Commercial banking sees article commercial bank. Prime brokerage with hedge funds has been an especially profitable business.  Corporate treasury is responsible for an investment bank's funding. Middle Office:  Risk management involves analyzing the market and credit risk that traders are taking onto the balance sheet in conducting their daily trades. real estate).  Investment management is the professional management of various securities (shares. 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.) and other assets (e. corporations etc. along with risk. and liquidity risk monitoring.g. and securities brokerage services to institutions. and controllers.g. etc. 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. 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. capital structure management.  Financial control tracks and analyzes the capital flows of the firm. often known as Private Wealth Management and Private Client Services. custody services. treasury. bonds. often falls under the finance division as well. The investment management division of an investment bank is generally divided into separate groups. lending.  Merchant banking is a private equity activity of investment banks. 14 . correctly and on time.

Raising Capital: An investment bank can assist a firm in raising funds to achieve a variety of objectives. Back Office:  Operations involve data-checking trades that have been conducted. preferred equity. 2. Mergers and Acquisitions: Investment banks often represent firms in mergers. and performing general advisory services. reduce its debt load. Compliance areas are responsible for an investment bank's daily operations' compliance with government regulations and internal regulations. Technology has changed considerably in the last few years as more sales and trading desks are using electronic trading. and private individuals. The investment bank will work with the client to structure the transaction to meet specific objectives while being attractive to investors. Technology refers to the information technology department. common equity. however. While some believe that operations provide the greatest job security and the bleakest career prospects of any division within an investment bank. specialized investment funds. 1. and transacting the required transfers. Smaller investment banks may specialize in two or three of these categories. advising in mergers and acquisitions. acquisitions. Often also considered a back-office division. It is. who are also responsible for technical support. Investment Banks Provide Four Primary Services: Raising capital. such as to acquire another company. executing securities sales and trading. or for specific project financing. Capital can include some combination of debt. many banks have outsourced operations. and 15 . created by the technology team. a great deal of capital is actually raised through private placements with institutions. a critical part of the bank. Every major investment bank has considerable amounts of in-house software. ensuring that they are not erroneous. and hybrid securities such as convertible debt or debt with warrants. Although many people associate raising capital with public stock offerings. expand existing operations.

then an investment bank will help finalize the purchase price. the syndicate group is a vital link between salespeople and corporate finance. Specific functions include making a market in a stock. placing new offerings. In the investment banking world.divestitures. Syndicate The hub of the investment banking wheel. General Advisory Services: Advisory services include assignments such as strategic planning. structuring. Corporate Finance: The bread and butter of a traditional investment bank. business valuations. corporate finance generally performs two different functions: 1) mergers and acquisitions advisory. as well as a valuation range and recommended structure. Syndicate exists to facilitate the placing of securities in a public offering. 3. and assistance in identifying. drag-out affair between and among buyers of offerings and the investment banks managing the process. a knockdown. In a corporate or municipal debt deal. a company wants to buy another firm. the investment bank should provide a thorough analysis of the entity bought or sold. In each case. assisting in financial restructurings. Example projects include the acquisition of a specific firm. and providing an opinion as to the fairness of a proposed transaction. capital can be raised by selling stocks or bonds (and some more exotic securities) to investors. and 2) underwriting. If. and executing a merger or joint venture. The underwriting function within corporate finance involves shepherding the process of raising capital for a company. Sales and Trading: These services are primarily relevant only to publicly traded firms. bankers assist in negotiating and structuring a merger between two companies. syndicate also determines the allocation of bonds. 4. Target your search 16 . The most comprehensive and convenient job board for finance professionals. structure the deal and generally ensure a smooth transaction. which plan to go public in the near future. On the mergers and acquisitions (M&A) advising side of corporate finance. and publishing research reports. the sale of a company or a subsidiary of the company. or firms. for example.

No surfing required. and find the job openings that you want.by area of finance. function and experience level. 17 .

Merchant bankers other than banks and financial institutions are also prohibited from undertaking any other business other than that in the securities market. In addition. However. Equity research should be independent of the merchant banking business so as to avoid the kind of conflict of interest as faced by American investment banks. Therefore. On the same analogy. On the regulatory front. Indian investment banks structure their business segments in different corporate entities to be able to meet regulatory norms.CHAPTER 03 CHARACTERISTICS AND STRUCTURE OF INDIAN INVESTMENT BANKING INDUSTRY Investment banking in India has evolved in its own characteristics structure over the years both due to business realities and the regulatory regime. the Indian regulatory regime does not allow all investment banking functions to be performed under one entity for two reasons–(a) to prevent excessive exposure to business risk under one entity and (b) to prescribe and monitor capital adequacy and risk mitigation mechanisms. it is desirable to have merchant banking is a separate company as it requires a separate merchant banking license from the SEBI. which prohibit them from exposing themselves to stock market investments and lending against stocks beyond certain specified limits. 18 .g. the capital adequacy requirements and leveraging capability for each business line have been prescribed differently under relevant provisions of law. commercial banks in India have to follow the provisions of the Banking Regulation Act and the RBI regulations. Asset management business in the form of a mutual fund requires a three-tier structure under the SEBI regulations. Therefore bankruptcy remoteness is a key feature in structuring the business lines of an investment bank so that the risks and rewards are defined for the investors who provide resources to the investment banks. A complete overview of the regulatory framework for investment banking is furnished later. For e. Stock broking has to be separated into a different company as it requires a stock exchange membership apart from SEBI registration. since banks are subject to the Banking Regulation Act. they cannot perform investment banking to a large extent on the same balance sheet.

with the downturn in the capital markets. While most institutions and commercial banks floated merchant banking divisions and subsidiaries. the long term financial institutions are gradually transforming themselves into full service commercial banks (called ‘universal banking’ in the Indian context). Firstly. IL & FS. Citibank and others offer almost the entire gamut of investment banking services permitted in India. Due to the primary market boom during that period. ICICI. The other development is that due to the gradual regulatory developments in the capital markets. There are also several others who are providing only corporate advisory services but prefer to hold merchant banking or underwriting registrations. licensing and capital controls. Among these. Kotak Mahindra. The bigger investment banks have several group entities in which the core and non-core business segments are distributed. Due to the above reasons.Investment banking in India has also been influenced by business realities to a large extent. Capital market services were mostly restricted to stock broking activity which was driven by a non-corporate unorganized body industry. investment banking activities have come under regulations which require separate registration. Other entities such as NBFCs or subsidiaries of public sector banks mainly offer merchant banking and other capital market services. the Indian investment banking industry has a heterogeneous structure. Others have either one or more entities depending upon the activity profile. The heterogeneous and fragmented structure is evident even if Indian investment banks are classified on the basis of their activity profile. Over the subsequent years. two developments have taken place. Merchant banking and asset management services came up in a big way only with the opening up of the capital markets in the early nineties. many financial business houses such as financial institutions. IDBI. underwriting and advisory business. NBFCs combined their existing business with that of merchant banking. Some of them such as –SBI. The financial services industry in India till the early 1980s was driven largely by debt services in the form of term financing from financial institutions and working capital financing by commercial banks and non-banking financial companies (NBFCs). 19 . the merchant banking industry has seen a tremendous shake out and only about a 10% of them remain in serious business as pointed out earlier. banks and NBFCs entered the merchant banking. They also have full service investment banking under their fold.

Alpic Finance etc. though public offers have been very few. Service Portfolio of Indian Investment Banks Core Services Merchant Banking.Presently. this area of service forms the main activity for most Indian investment banks. there have been two distinct phases of primary market boom –the first between 1992-1996 and the second between 1998-2001. the SEC in USA. was revitalized with the abolition of the Capital Issues (Control) Act 1947 and the passing of the Securities and Exchange Board of India Act. which focus on one or more segments of the investment banking spectrum. KPMG. There are also in the middle level. Notable among such offerings are related privately placed debentures issued by public sector corporations and leading private 20 . 1992. The third wave of primary market issues could shape up in the near future. In the past few years. In the days when the public offers market is very vibrant. certain banks such as Canara Bank and Punjab National Bank have had successful merchant banking activities. Over the last ten years. 1992 introduced free pricing of securities in public offers for the first time in India. At the lower end are several niche players and boutique firms. the private placement market especially in the debt segment has been very active and has served as an important source of funds for prime-rated corporates. Among the middle level players are also merchant banks structured as non-banking financial services companies such as Rabo India Finance Ltd. The SEBI functions as the regulator for the capital markets similar to its counterpart. However. Price Waterhouse Coopers etc. At the middle level are several niche players including the merchant banking subsidiaries of some public sector banks. there are no global Indian investment banks although there is a bulge bracket of investment banks in India that have some overseas presence to serve Indian issuers and their investors. Underwriting and Book Running The primary market which was quite small in India. some pure advisory firms such as –Lazard Capital. Some of these subsidiaries have been either shut down or sold off in the wake of two securities scam seen in 1993 and in 2000. Ernst & Young. SEBI vide its guidelines dated June 11. This market is very closely regulated by SEBI.

While some of them provide pure advisory services in relation to M&A. popularly known as the Takeover Code.  Support services and Businesses Secondary Market Activities Most of the universal banks such as ICICI. In addition several other investment banks such as the IL & FS and pure investment banks such as DSP Merrill Lynch and JM Morgan Stanley have a strong presence in this area of activity. raising private equity. 1956). Mergers and Acquisitions Advisory The mergers and acquisitions industry was pretty nascent in India prior to 1994 and continues to be tiny compared to the global scale of such transactions.companies. others holding valid merchant banking licenses from SEBI also manage the open offers arising out of such corporate events. investment banks would have a wider role to play in such issuances. Once the private placement markets also come under regulatory stipulations. structuring joint-ventures and strategic partnerships and other such value added specialized areas. One of the cream activities of investment banks has always been M&A advisory. the derivatives segment has 21 .  Corporate Advisory Investment banks in India also have a large practice in corporate advisory services relating to project financing. However. IDBI and Kotak Mahindra have their broking and distribution firms in both the equity and debt segments of the secondary market. In the past few years. Financial institutions have been raising funds via the public offers and hand holding them in the private placements as well.  The institutionalization of corporate acquisitions by SEBI through its guidelines. The larger investment banks specialize in M&A as a core activity. corporate restructuring. capital restructuring through equity repurchases (including management of buyback offers under section 77A of the Companies Act. two main features that have given a big push to this industry are:  The forces of liberation and globalization that have forced the Indian industry to consolidate.

which till then had the presence of a handful of public financial institutions such as the UTI and the insurance companies. wealth management may be restricted to a research based activity wherein the investor is provided good investment recommendations from time to time. risk management and structured products offerings are the new segments that are fast becoming the areas of future potential for Indian investment banks.been introduced in Indian capital market and this provides an additional avenue of specialization for investment banks. Derivatives trading. The trust is managed by an asset management company and a separate trustee company which oversees the interests of the unit holders in the Mutual Fund.  Institutional Banking Institutional investors have been a recent phenomenon in the Indian capital market. The secondary market services cater to both the institutional and non-institutional investors. the IDBI. Such activity is regulated under the SEBI guidelines as already discussed. SBI and IL & FS also have their presence in the asset management business through separate entities.  Asset Management Services Most of the top financial groups in India which have investment banking businesses such as the –ICICI. In the former case. JM Morgan Stanley. This can be structured either as a pure advisory service wherein the investment manager does not have any access to the funds or as a fund management service wherein the investment manager is given charge of the funds. In other cases. the parent organization acts as the sponsor of the fund and the fund itself is constituted as a trust. it becomes a non-discretionary portfolio and in the latter case. DSP Merrill Lynch.  Wealth Management Services (Private Banking) Many reputed investment banks nurture a separate service segment to manage the portfolio of high networth individuals. The securities business also provides extensive research offerings and guidance to investors. The term lending institutions such as the IDBI 22 . As per the three layer structure propounded by SEBI. households. it becomes a discretionary portfolio. trusts and other types of non- institutional investors. Kotak Mahindra. The whole structure has as arm’s length distance from the sponsor’s other businesses and entities.

This inter-dependence and complementary existence has been explained below. In addition they make proprietary investments in the secondary market through their dealing and market activities. others provide invaluable support. institutional investments have risen significantly in the primary markets through venture capital and private equity investments by investors in both the domestic and non-domestic categories.e. Advisory and transaction service have a close linkage with merchant banking as more often than not. The business portfolio of Indian Investment Banks has been briefly discussed in Fig. With the advent of liberalization.  Interdependence between Different Verticals in Investment Banking As is evident from Figure . which helps not only in generating good fee income from merchant banking services. Similarly. there are presently a large number of domestic institutional investors in the secondary market apart from approved foreign institutional investors.and IFCI did not participate in secondary market dealing as a matter of policy. venture capital and private equity has equal synergies with merchant banking. While some of the service or business segments form the core of investment banking. Several of the leading investment banks either have dedicated venture funds or private equity funds that invest in primary market. but also good in capital gains for the venture capital invested at earlier rounds of financing in such companies. Such services also help in maintaining an enduring relationship with clients during those times when merchant banking is not a hot activity due to depressed market conditions. The concept of market making has now been introduced for listing of certain scrips in the main stock exchanges as well. The other segment of primary market activity. i. In addition. While merchant banking largely relates to management of public floatations of securities or reverse floatations such as buy backs and open offers. Similarly. bought out deals and market making are a part of the process of floating issues on the OTC Exchange of India. such services culminate in a merchant banking assignment for a public issue or a reverse floatation. underwriting is an inherent part of merchant banking for public issues. being in private equity business helps in harnessing the potential offered by 23 . there are different verticals in investment banking and they do enjoy synergies with one another. Being in venture capital business which enables identification of potential IPO candidates quite early.

portfolio management. Thus. which may approach an investment bank primarily for merchant banking services. The support business vertical in the secondary market operations also have synergies with those in the primary equity and debt market segment as far as investment banking is concerned. corporate and retail clients who can be tapped effectively for asset management. investment banking is a business that is very sensitive to the economic and capital market scenario and therefore. the advisory and transaction services vertical can draw expertise from such segments in providing structured financing solutions to its clients. 24 . In addition. the more is likelihood of an investment bank surviving business cycles and sudden shocks from the market. presence in the equity derivative and foreign exchange derivatives segments can help in offering solutions in treasury management to clients. Lastly but more importantly. it may be seen that the growth and success of an investment bank depends on its strengths in each vertical and how well it combines them for synergies. and private equity business. Stock broking and primary dealership in debt markets nurture institutional. All these verticals are driven by support services such as sales and distribution and also equity research and analysis.later stage and listed companies. the broader the platform of its operations. To sum up. the capability in sales and distribution also determines the success of the merchant banking vertical. In addition.

The RBI has relaxed the exposure limits for merchant banking subsidiaries of the commercial banks. At the constitutional level. An overview of the regulatory framework is furnished below:- 1. Pure investment banks which do not presence in the lending or banking business are governed primarily by the capital market regulator i. 25 . SEBI. 2. to 25% of their net owned funds. Therefore these companies are now on par with 19 Investment Banking other investment banks which can do so upto 20 times their net owned fund. Investment banking companies that are constituted as non-banking financial companies are regulated operationally by the RBI under Chapter IIIB section 45H & 45QB of the RBI Act. they are also regulated by SEBI. 3. However universal banks & NBFC investment banks are regulated primarily by the RBI 9in their core business of banking or lending & so far as the investment banking segment is concerned. 1934. Universal Banks are regulated by RBI of India under the RBI Act 1934 & the Banking Regulation Act which put restrictions on the investment banking exposures to be taken by the banks.CHAPTER 04 REGULATORY FRAMEWORK FOR INVESTMENT BANKING Investment banking in India is regulated in its various facets under separate legislations or guidance issued under statute. 4.e. Under these sections RBI is empowered to issue directions in the area of resources mobilization. Investment banks that are incorporated unde4r a separate statute such as the SBI or the IDBI are regulated by their respective statue. IDBI is in the process of being converted into Companies Act. The regulatory powers are also distributed between different regulators depending upon the constitutions & status of the investment bank. Till now. accounts & administrative controls. all investment banking companies incorporated under the Companies Act 1956 are governed by the provision of the act. such companies were restricting their exposure to a single entity through the underwriting business & other fund based commitments such as standby facilities etc.

26 . 1993. These are listed below: Merchant banking business consisting of management of public offers is a licensed & regulated activity under the SEBI Act (Merchant Bankers). 1998. The activity of secondary market operations including stock broking are regulated under the relevant by-law of the stock exchange & the SEBI (stock broker & sub broker) Rules & Regulations.1996 & by those that are incorporated outside India is regulated under the SEBI ( Foreign venture capital funds) Regulations. 1992. 1992 & the guidelines & regulations issued under. The business of institutional investing by foreign investment banks & other investors in Indian Secondary markets is governed by the SEBI (Foreign Institutional Investors) Regulations 1995. The business of venture capital & private equity by such funds that are incorporated in India is regulated by the SEBI(venture capital) Regulations. 1999& Foreign Exchange Management (Transfer or issue of a person resident outside India) Regulations 2000 issued there under as amended from time to time through circulars issued by the RBI.2000. The business of portfolio management is regulated under the SEBI (Portfolio mangers) Rules & Regulations. SEBI has issued the SEBI (Prohibition of fraudulent & unfair trade practices relating to securities markets) Regulations 1995& also SEBI prohibited insider trading under regulations. 1992. Besides for restricting unethical trading practices. different aspects of investment banking are regulated under the securities & Exchange Board of India Act.The following directions have been issued by the RBI so far: Non-Banking Financial Companies Acceptance of Deposits (Reserve Bank) Directions. 5. 6. 1998. Investments banks that are set up in India with foreign direct investment either as joint ventures with Indian partners or as fully owned subsidiaries of the foreign entities are governed in respect of the foreign investment by the Foreign Exchange Management Act. 1996. Underwriting business is regulated under the SEBI (underwriters) Rules & Regulations. 1992. 20 Investment Banking The business of asset management as mutual funds is regulated under the SEBI (Mutual Fund) Regulations. Functionally. 1993. NBFCs prudential Norms (Reserve Bank) Directions.

Apart from the above specific regulations relating to investment banking. investment banks are also governed by the other laws applicable to all other underwriting support on government securities issue & participate in auctions held by the RBI.7. 27 .

Highest position is Managing Director (MD). Some banks distinguish between VP and Senior VP. except that they also have interns to boss around. This is when the real fun starts. 28 . At senior positions bankers mostly focus on client relationships and management of their subordinates. They are responsible for all the imaginable variety of tasks – from building Excel models to ordering dinner. In a few years they get a shot for promotion to VP (vice-president) and later – Director level. He is the ultimate rainmaker – bringing in new business and overseing the entire division of the investment bank. but ultimately the way up the career ladder is standardised. Investment banking career path is pretty much universal in the industry. Then there are analysts – pretty much the same story.CHAPTER 05 The Typical Hierarchy/Ladder within an Investment Bank The basic hierarchy works in the following way At the lowest level there are interns. They start managing the clients and deal execution process. they move to associate level. Once the analysts get promoted. or Director and Senior Director.

Long working hours. 15% on Excel and 30% on general administrative crap. late cabs home.I drafted the outline in the infographics below. division. Multiple projects at once. You get a real taste of investment banking. find financial data and input it in the Excel model to calculate multiples. your main task is to assist analysts or associates on whatever they ask for. This can vary from drafting slides to printing pitch books or building a mini-valuation model. compensation and time to promotion differ by individual bank. Typical tasks: Look through the annual reports of 10-15 companies. On top of base salary you will also be eligible for a number of perks – paid dinners after 9pm.1K per month where for the same internship in London I was receiving $5k per month. There will be some interns going insane with 6 projects at once and some joggling around two big deals and leaving early. and sometimes even transport expenses or relocation reimbursements. Exact work varies case by case of course. Expect at least a few all-nighters per month (see more coverage on investment banking hours here). INTERN What do you do: It all starts here. How much are you paid: In most countries you earn as much as the first year analyst (without the bonus). That should give you a basic idea on what to expect if you are planning to break into investment banking world. a lot of time understanding and mastering Excel and Powerpoint. This should amount to at least $1. team and – of course – luck. Research market information and draft a slide based on the layout suggested by your analyst. hard work. Your intern workload will be a matter of luck. How much do you work: 9am to 2am is standard. Contact 15 people to get biographies of specific team members and create a “Team” slide. Keep in mind that this is only the basic snapshot – exact responsibilities. Sometimes (often) you won’t leave the office until 4am. Sometimes (rarely) you will be able to finish around 12am. Take a careful look at the local offices: those outside financial hubs like NY or London can often list a much smaller salary (for the same amount of work). In Netherlands I was paid an equivalent of $1. 29 .2k per week in global offices. Expect around 55% of your time working on slides. Essentially.

you have more responsibility. As you progress you will be given more responsibility. Most of your time will be devoted to preparing pitch books (gathering information and drafting long presentations). Amsterdam or Milan – they love to do one thing. Actually. the better your hours will be. Extend your internship. You are expected to efficiently coordinate the work on the project (and the interns). By the end of the term you will notified if you are offered a full-time position. The tricky part starts with local offices. Be it Frankfurt. Those are pure evil. And then again. ANALYST What do you do: You are in. as a first year analyst it is pretty much the same. It carries on to the point where you are expected to work as an intern for 3 months and end up there for a year. 50% Powerpoint. Amazing. You might be asked to build you own Excel model or create a pitch book skeleton. 30 . At the level of second-year analyst you are likely to get more help from interns too – so your job will begin to move away from boring administrative duties to more exciting pitching and deal work. first year analyst come in around 10am and leave after 12am. As the same time. Preparing presentation deck and drafting slides. Don’t think your job will be much different from internship times. The more you progress in your investment banking career path. How much do you work: Similar to interns times. printing pitch books or making travel arrangements). I knew people who managed to change three internship positions – slowly but surely being sucked into “indefinite internship”. You still have to engage into multiple activities and take care of a huge pile of stupid administrative tasks. Moscow. Typical tasks: Building DCF valuation model from scratch for one of the clients. Calculating the value of the company. Tough. quickly produce high-quality output and proactively come up with good ideas and project suggestions.How long will it take to get promoted: 2-3 months in UK and US. Analyst position is probably the hardest and most demanding position time wise. Internships cycles there are fixed. Expect 30% Excel work. arranging meetings. and 20% administrative tasks (scheduling conference calls.

They have time to have longer lunch breaks or even hit the gym in the evening. your team and individual performance). 40% project management. 15% administrative tasks (analyst recruiting. They also leave before 11pm. ASSOCIATE What do you do: in associate role you are still occupied with execution. The array of your tasks will get more diverse at this level: 10% Excel. but devote much more time to project management. Despite long hours associates lifestyle is marginally better than that of analysts.How much are you paid: Expect a starting salary of at least $85K per year and a bonus of $55k+ (keep in mind the exact numbers vary by the bank. A common statistic is that only 10% of the investment banking analysts are promoted to associates. Occasional all-nighters happen but are incredibly rare. How long will it take to get promoted: In three years you should be promoted to associate position. 31 . How much do you work: Associates come in after 9am (I even knew one that never showed up before 11am). This is the first time in your career you will have time and responsibility to start interacting with clients and attend meetings. prep for conference calls). You act as a bridge between analysts and seniors (VPs and Directors). Look for additional revenue opportunities for the client. but often come in on either Saturdays or Sundays to finish some work. 70-80 hours work week is standard. 15% client management. 20% checking analyst work. Typical tasks: Check a set of multiples prepared by the analyst – and come up with ideas on how to boost the valuation by adding a few other companies. If so. you will work for one more year before reaching associate level. It is about right – but keep in mind the number is so low because 80% of the analysts choose to move elsewhere. How much are you paid: your overall compensation (bonus included) will start at around $200k yearly and can go up to as much as $400k-$500k depending on the bonus. After two years you will be critically evaluated and a decision will be made if you stay in the bank. Lead the conference call with client team on the findings.

000 VPs – and only 300 or so Managing Directors. and 40% on client management. This why the role of a VP is probably the most challenging one in the bank. good relationships with the clients. VICE-PRESIDENT (VP) What do you do: This is where it starts getting interesting.5 years if you are eligible.How long will it take to get promoted: 3. Besides execution and everyday management activities you need to start winning clients if you want to progress further in your career. Promotion to the VP level is not automated. Typical tasks: Lead a meeting with a client where you present bank’s proposal. understanding of the industry and technical aspects of the job. How much are you paid: compensation will start at $200k. For you to be able to move on to the next level you need to show your excellent deal execution skills and ability to bring in new clients. Anticipate a market development that can present an opportunity for the bank and start proactively working in this direction. and you should be able to get the same amount in bonus. but they usually do it from home. You are responsible for deal execution and all the marketing work (pitches). You will be evaluated on a number of skills before being offered a Vice-President position. Draft the outline of the upcoming pitch deck and explain to analysts / associates what needs to be done. Goldman Sachs alone has more than 12. Transition to Director level is incredibly difficult. How much do you work: Your hours keep getting better. You need to manage associates and analysts to ensure the work is being done properly and on time – at the same working on relationship building with the clients. Generally the bank will be looking for great project management skills. You start around 9am but usually leave before 9pm. Many VPs are stuck in the position indefinitely.How long will it take to get promoted: can be two years – and can be never. 32 . Often VPs have to work at weekends too. Expect to spend 60% of your time on deal execution and project management.

Despite shorter hours travelling is a huge part of MD’s usual activities. How much do you work: Directors have a lifestyle that more often resembles “normal”. They never show up on weekends. How much are you paid: salaries start from around $300k without a bonus. but there is no straightforward way to reach those. you can also a become a Partner. At least three out of five days will be spent on the road. They oversee and control the overall process but spend very little time on it. and there are some that manage to make millions in a year. Typical tasks: Fly around the globe to meet companies. Your responsibilities will not change – but your compensation might increase significantly. How long will it take to get promoted: as a Director you are already at the highest ladder of your career. They usually come in quite early. As a Director you can aim at even higher levels – like Group Head. There are MDs who get salaries close to their base compensation. and leave around 6-7pm. The upper potential is unlimited. before 9am. Directors are rarely involved in execution. In some firms.DIRECTOR / MANAGING DIRECTOR What do you do: at this level your job is only about clients. although they do work from home (which as an analyst you can see from early emails Saturday morning). Proactively approach businesses to win deals. A typical schedule of an MD would be something like breakfast in Amsterdam with CEO of Shell and afternoon board meeting somewhere in Oslo. Their task is to bring in new business. 33 . All is dependent on individual merit. Position yourself to advise CEOs and spot developments in the market that can potentially turn into new business.

Before practical solutions emerge. The clients will also feel at home while dealing with a product specialist. Comprehensive and in-depth knowledge of financial and business concepts are essential to sustain business. The financial skills of an expert are tested to the core while handling a complicated deal. say hybrid instruments.In the early days of investment banking. Today. Financial solutions can be provided to the clients only when the advisor is competent to understand all or at least a majority of them.One way to specialize in an investment bank is through products. not much importance was attached to academic background. Typically. the business has become very complicated and the skill requirements have multiplied.CHAPTER 06 SKILL SUGGESTED FOR INVESTMENTBANKERS Technical Skill Academic Background.While clear cut guidelines can be issued to the traders regarding their market related activities that are governed by the law. the complexity multiplies for an M&A deal. Legal knowledge is also important for structuring such deals. An expert in a particular product. Investment banks rely heavily on campus recruitments  Conceptual Soundness. Consequently. appropriate products that would suit their risk profile should be identified.One of the major benefits for a professional in an investment bank is the learning associated with work.  Product Specialization. The regulators’ guidelines have to be strictly followed. investment banks find it important to recruit people with the right academic credentials. A strong grounding in theory and concepts facilitates this. which will help identify the constraints associated with proposed solution. for most of the important jobs. can work out financial solutions for any client across the industries. Each client has his or her individual risk taking ability. The situation gets more intense when the deal 34 . the tools for decision-making will give greater choice to the solution provider.  Legal Knowledge. Multiple relationships between various factors render decision-making difficult. To cater to the client on an in basis. an MBA is a must. even while envisaging a combination.

More than any other industry. Any mistake in these would lead to faulty execution of orders and might entail additional costs to the firm in correcting the errors. the SEBI & central bank acts as a watchdog and regulator of market related activities.  Knowledge of International Business Scenario and Economic Trends:- Though a researcher is primarily involved in economic and business cycle studies.  Knowledge of Regulatory Bodies involved in the Various Operations. who also act as financial consultants/advisors. Apart from the knowledge of the inland laws. 35 . Quick signaling and accurate interpretation are of utmost significance. guidelines. procedural formalities and actual trade execution processes involved in capital market. along with the trade clearing and settlement houses.It is necessary for an investment banker to be aware of all the regulatory bodies that govern the activities in which he/she is involved.  Knowledge of Capital Markets and Functioning. Salespersons. Trading system involves a lot of additional skills than online trading. Any changes in the capital market regulations affect the brokerage side of the business. is a cross-border M&A proposal. it is the investment banking industry that has a direct bearing on the way capital markets function. A thorough knowledge of all such bodies is absolutely essential to perform extraordinarily. He has to be conversant with the codes. Any regulation by the foreign government can make an otherwise desirable deal. lest they lose the respect and trust of the client. foreign laws also have to be considered. symbols and conventions followed by the market. it is the duty of all the investment bankers to have a general overview of these affairs. The requirement for global perspective and international exposure is becoming increasingly important.g. should essentially be aware with economic and business cycles. E. In India.equipped with international business information. The firm should offer services across the national borders to the corporate clients and informed services are possible only when the employee is well. The trading personnel should be conversant with the regulations. unviable.

Marketing.The securities trader has changed into a tech-savvy professional. the audiences vary extensively. Developments in the Field of Information Technology. Communication Skills  Ability to Cater to the Audience According to its Awareness Levels- Communication skills include both the means of communication — written and oral. Cash flows. A marketer handling individual investors will necessarily have to keep the content very simple and express t in layman’s terms. and hence.  Personality Traits.Personality Traits plays an important role in developing the skill set of an investment banker.Negotiation skills is important at a variety of places. business lines to be developed above all dealing with the overlapping functions.  Negotiation Skills.One of the most important technical skills is the usage of computers. M&A transactions are the toughest assignments for negotiations. Knowledge of Software Tools. offer price. It comes 36 . tools and internet technologies. Comp frameworks can be solved with minimum effort using technology. organization and reporting structure. the requisite communication skills also differ widely. However. post merger integration. Creativity is an important feature. Institutional clients have to be convinced about the prospects of the investments that are solicited by the firm. research and capital mobilization have all undergone sweeping changes owing to technology. The common issues that pertain to negotiation are terms of offer. Even a friendly transaction would be difficult if not for patient and mutually negotiations. The technology helps management and other departmental professionals and even the clients to disseminate such data in negligible time. Usage of financial terms & jargons will not fetch results. Asset managers have now complicated tools for scientific and in-depth valuation of portfolios. the banker should always keep the prime object in the mind & quickly evaluate the various counter offers & suggestions made by other party. the characteristics of the instruments & the risk class to which the investment belongs to must be explained in simple & easily understandable terms. While negotiating. executing online orders & maintaining databases. Investors in syndicated debt must be satisfied with the payment streams and interest rate terms. brokerage.

competitors. Team exercises can also include dealing with members from other departments or even with other firms.  Networking Skills. Inter-personal skills come to the fore during team exercises where diplomacy and manners become essential.  Inter-Personal Skills-Inter-personal skills are basically blended from communication skills. is of utmost importance in getting mandates. Other Skills  Marketing Skills.Networking refers to the process of developing a web of contacts and acquaintances. colleagues. clients & team members. subordinates.The marketing skills would be an application of skills mentioned above. Innovations & creativity are required structure deals. One of the important marketing skill would be relationship management. • Persuasion skills. • Highest standards of professionalism. it is fundamental issue in the investment banking industry. It is essential when solutions are to be identified for complex problem. Unlike most other industries where relationship plays a facilitating role in conducting business. and personality traits. • Approaching through proper channels that would lend credibility respectability to contacts. in use while handling prospectus. team members and even politicians and public office bearers. Such situations call for greater application of team skills and an element of mutual respect towards each other. • Presence of mind to apply the appropriate skills as situation demands. 37 . during boom & down period. Some of the special attributes required to develop networking abilities would include: • Knowledge of human psychology. They include interactions with superiors. establishing & maintaining relationships. An attitude for creating. clients.

derivatives and corporate advisory services. The equity business offers research. In order to assist/provide corporate clients and institutional investors with investment banking services in the USA. a member of the National Stock Exchange of India Limited. Originally incorporated as DSP Financial Consultants Ltd. I-Sec is a full service investment bank that provides services across all the segments spanning –debt market. equity market.P. It has support services in research and broking. ICICI Securities Inc registered itself with the National Association of Security Dealers Inc as a broker-dealer. cross border acquisitions. Morgan exited from the business. empowering it to engage in a variety of securities transactions in the US market. DSP Merrill Lynch Ltd. its name was changed to DSP Merrill Lynch (DSP-ML) in 1996 following its conversion into a joint venture with Merrill Lynch of USA. became fully owned by ICICI after J. Merrill Lynch has a 40% equity stake in DSP- 38 . the ICICI Bank in 2003.CHAPTER 07 LEADING INDIAN INVESTMENT BANKS. is the domestic broking subsidiary of I-Sec’s distribution and secondary market services are handled by the broking company. I-Sec set up two US based subsidiaries namely ICICI Securities Holding Inc and ICICI Securities Inc. equity and bidding for a number of reputed companies. which was initially a joint venture with J. a leading international capital raising financial management and advisory company. ICICI Securities Ltd. I-Sec is a part of the ICICI group whose parent company is the ICICI Bankm which till recently was a financial institution that converted itself into a universal bank by it merger with its own commercial bank. structuring and regulatory and legal documentation services. The advisory business focuses on merger and acquisitions. (I-Sec). Morgan of the US. ICICI Brokerage Services Limited. I-Sec. sales and execution services to institutional investors in the secondary market and capital market related services such as execution of public offerings.P.

the Mergers and Acquisitions Group. is one of the largest institutional broking firms in India. retail clients and overseas investors. Both the marketing groups serve a cross section of institutional clients. the products emerging from other entities such as DSP Merrill Lynch Mutual Fund and other mutual funds. It is an accredited primary dealer with the RBI and an active participant in the Government Securities/Treasury bill markets. equity market and corporate advisory segments. Bloomberg and Dow Jones Newswires. The sales groups are supported by a national distribution networking comprising of approximately 8000 sub-brokers and alliance partners. It is a founding member of The Stock Exchange.ML. The sales groups also distribute apart from their own products. DSP-ML is a part of the DSP group which has been in the securities and brokerage business for 130 years in the Indian market. the Research Group and the Private Client Group. The company is among the major players on proprietary account in the debt and equity markets and is also a registered primary dealer in government securities. These quotes are also available on wire services like Reuters. secondary issues and debt market issues as well as private placements. As a primary dealer. the Equity Trading and Dealing Group. the Equity Sales Group. Debt Sales Group. It also provides services to private customers on equity and debt products and wealth management. DSP-ML is a leading full service Investment Bank that provides services across debt market. Crisil Market wire. thus pre-dating even the Bombay Stock Exchange. DSP-ML. other non-institutional clients such as trusts and investment companies. The trading and dealing groups support the broking activity in equities and the primary dealership activities in the debt market. it makes a market for debt securities by offering to buy and sell quotes. Mumbai (BSE) and is an active member of the National Stock Exchange (NSE) of India in both the equity segment and the wholesale debt market segment. 39 . It has a full fledged research team serving the needs of both its institutional and retail clients. The investment banking group generates equity and debt products emerging from IPOs. It is also a leading underwriter in both equity and debt products. The functional divisions at DSP-ML consist of the –Investment Banking Group. These products are distributed through the equity sales group and the debt sales group.

the association of the two partners is limited only to the investment banking area. Ltd. spin-offs. equity sales and marketing support for the group broking activity and wealth management and portfolio management services to high net worth individuals. daily. corporate executives. an investment bank founded in 1924 in San Francisco. However. The core functions of investment banking are performed by JMMS. Ltd. de-mergers. The function of distribution and marketing securities is handled by two of its wholly owned subsidiaries –JM Morgan Stanley Retail Services Pvt. JMFI offers similar services in fixed income (debt) securities. had acquired Dean Witter. Ltd. JM Morgan Stanley commenced operations in April 1999. which is a member of the BSE. the DSP group floated a separate equity broking company called DSP Securities Ltd. In 1997. JMRS provides equity distribution services for primary market products. the JM Group has separate companies handling various components of the capital market business. trusts and private companies. broking and investment advisory services to high net worth individuals. The private client group offers depository.The mergers and acquisitions advisory has been structured as a separate specialist group that offers their clients financial advice and assistance in restructuring. private equity and advisory work for Indian corporations in both the international and domestic capital markets. A third company. JM Morgan Stanley Securities Pvt. mutual funds. professionals and promoters of business groups. (JMRS) and JM Morgan Stanley Fixed Income Securities Pvt. privatization and takeover defense mechanisms. The research group offers products such as –sectoral reports. Morgan Stanley which was established in New York in 1935. JM Morgan Stanley (JMMS) is a joint venture between the JM Financial Group and Morgan Stanley Dean Witter of the USA. Both of them have separate asset management companies in India which run independent of mutual fund businesses. (JMFI). joint ventures. company reports and special theme analyses. acquisitions. JM Morgan Stanley Pvt. mergers and acquisitions. handles all the broking operations for the group and provides 40 . weekly and monthly market views as well as specific policy forecasts. Ltd. Unlike DSP-ML and I-Sec which have an integrated structure. In 1996. This company focuses on capital raising. divestures.

41 . and vetting of contracts. valuations. financial and business restructuring and other areas. contract structuring. SBI Caps has been a major player in governmental work and in the infrastructure sector. SBI Capital Markets Ltd. policy advisory to Central and State Governments. (SBI Caps) is amongst the oldest players in the Indian capital market. SBI Capital Markets Ltd Founded in 1986 as a hive-off of the SBI Merchant Banking division.  Capital market: This group provides merchant banking services in connection with public issues. techno-economic appraisal from banks and financial institutions for establishing the viability of corporate restructuring plans. Other services include appraisals for green-field and brown-field projects.  Project advisory and structure finance: It is arguably one of the leading groups in the company that provides services such as restructuring and privatization advisory for public utilities. The project advisory services consist of hand-holding from the concept to commissioning stage involving project structuring. It also advises clients on the private placements. advisory and financial services.services to institutional clients and others. financial modeling. project documentation etc. regulatory bodies and government departments and organizations. loan documents. It is a full service investment bank that provides investment. In 2001. It also provides research support for both FII and Indian institutional clients. preparation of information memorandum. syndication of debt and equity and assistance in documentation and financial closure. mergers and acquisitions in the corporate sector. ADR and GDR issues and overseas bond issues by the SBI. SBI Caps provides services across the following spectrum:  Mergers and Acquisitions: This group provides advisory services with regard to disinvestment of the government. project structuring and advisory to the private sector and arranging finance for such projects. rights issues and public offers for buy-backs and open offers. SBI Caps started its sales and distribution activity along with equity and debt broking services.

 Sales and Distribution of equity and mutual fund products: SBI Caps has been a leading mobilizer of funds both for public offers and private placements. other corporates. non-resident investors and retail investors. The Kotak Mahindra Capital Company (KMCC). is the investment banking entity belonging to the Kotak Mahindra Group. (b) Fund based segment which undertakes deployment of funds in leasing.  Broking of Equity and Debt: SBI Caps is a registered broker and a member of the NSE in the equity and wholesale debt segments and is also a member in the equity segment. as a result of SEBI directives. However. underwriting. hire purchase and securities dealing. SBI Caps reported that is has two business segments –(a) Fee based segment providing merchant banking and advisory services like issue management. SBI Caps was ranked first among issue managers by PRIME database. In its annual report for the year ending March 31. The broking group caters to the secondary market needs of financial institutions. fresh lending under leasing and hire-purchase was stopped from 1st July 1998. high net worth individuals. For the period 2001-02. Debt Market Review and Daily Debt Market review which are circulated to SBI Caps investment banking and broking clients. Treasury and Investments: This group deals with the proprietary investment of the company in the equity. Kotak Mahindra Capital Company Born in 1995 as part of a corporate re-organization as an unlimited company. The company commenced wholesale debt market broking in 2001. banks. mutual funds. The company plans to open a derivative trading desk soon. 2002.  Research: This group provides the research support for in-house departments and for institutional clients. debt and money markets. KMCC is a full service investment bank whose core business centers on equity 42 . project advisory and structured finance. Resource mobilization and management is also undertaken by this group. It is a strategic joint venture between Kotak Mahindra Bank Limited (KMBL) and the Goldman Sachs Group LLP of USA. Besides regular updates on companies and industries. FIIs. The company expects to have a strong presence in institutional broking. arranger. the research group brings out India Strategy.

gas. automobiles. Products include initial public offerings (IPOs). oil.issuances and fixed income securities. mergers and acquisitions and advisory services. Kotak Securities offers services to investors. which is registered with the Securities and Futures Association. KMCC is registered with SEBI and is also registered as a non-banking financial company with RBI. UK and (b) Kotak Mahindra Inc based in USA. UK and regulated by the Financial Services Authority. negotiations and bidding. which is registered with the Securities and Exchange Commission. Government companies. banks and corporates on raising capital by way of public or private placement of debt. ports. It is also an active member of the association of Merchant Bankers of India (AMBI). financial institutions and the Government. banks. based in Mauritius provides distribution and other client services to non-resident investors. steel & metals and hotels by offering structured finance solutions to clients. A third company called Kotak Mahindra (International) Limited. valuation. insurance 43 . financial institutions. KMCC is supported in its functions by Kotak Securities Ltd. the Structured Finance (Project Finance & Advisory Business) Group provides expertise in various vertical segments in the infrastructure sector including power. financial institutions. capital structuring. religious and charitable trusts. assistance in legal documentation and acquisition financing strategies and implementation. USA. mutual funds.. As an investment bank. convertible offerings. In KMCC. rights offerings. KMCC has two wholly owned subsidiaries –(a) Kotak Mahindra (UK) Limited. transaction structuring. distribution and research business of the group. Kotak Securities is a member of the debt segment of the NSE and is also a member of the National Stock Exchange Members Association. In the advisory business. private placements and private equity for unlisted and listed companies. KMCC is credited with innovating on some bond structures in the Indian market. KMCC is the first Indian investment bank to have sought such regulations in USA and UK. The advisory group on mergers and acquisitions provides complete solutions on strategy formulation identification of targets or buyers. The Fixed Income Securities Group at KMCC advises PSUs. a broking firm incorporated in 1995 that is also a joint venture with Goldman Sachs which handles all the broking. the Equity Capital Markets group focuses on structuring and executing diverse equity financing transactions in the public and private markets for corporates.

analyses the key influencing issues. Due to its overseas presence. It caters to the needs of foreign and Indian institutional investors in Indian equities (both local shares and GDRs). which is a joint venture with Old Mutual Plc of UK and the Kotak Mahindra Venture Capital Co.  Monthly FINSEC and FINSEC Focus. In the international arena. provides underwriting support on government securities issues and participates in auctions held by the RBI. a product called AKSESS. assess future outlook and also recommends hedging strategies. which primarily covers secondary market broking. the company acts as a market maker and also provides two way quotes.  The CURRENCY WATCH captures the monthly developments in the Indian foreign exchange markets.  The Weekly Money Market Update which gives the details of the developments in markets and provides a short-term interest rate view along with indicative pricing for Triple A credits.companies. Kotak Securities is also a registered primary dealer with the RBI in the government securities market. The research products brought out by Kotak Securities include:  For the institutional clients. acts as retailer and marketing agent.  The Daily Forex Monitor which tracks the Indian and international foreign exchange markets and opines on currency strategies on a daily basis. which manages the private equity fund of the group. 44 . etc. The institutional business division has a comprehensive research cell with sectoral analysts covering all the major areas of the Indian economy. the company has marketing interests in Indian GDR and ADR issues as well. the above companies. the Kotak Mahindra Mutual Fund which is managed by the Kotak Mahindra Asset Management Co. it provides brokerage services on the Indian securities to institutional and other investors who are based outside India. the Kotak Group includes the Kotak Mahindra Bank which was formerly a non-banking finance company that has recently been converted into a bank. Ltd and the OM Kotak Life Insurance. As a primary dealer. Besides.

The sectors under IDFC's financial assistance are infrastructure. It is certified under the Category I of Merchant Bankers by SEBI. mutual funds. corporates. etc to both public and private institutions. controlled finance. fixed returns. life insurance. high income patrons and Non-Resident Indians (NRIs). corporates. Bajaj Capital The Bajaj Capital Group is one of the renowned Investment consultant and Financial Planning firms in India. customers and comprehensive banking activities across middle east and asia. etc. healthcare.Avendus Capital: An investment bank providing mergers and acquisitions. Bajaj Capital provides custom-made Fiscal Planning facilities and investment consultation to the investors. 400 million. Pharmaceuticals. transportation. 45 . It presently concentrates on sectors where Indian firms have strategic expansion advantage namely Healthcare. cholamandalam investment & finance company a combined fiscal service provider of three firms namely cholamandalam dbs finance limited (cdfl). The bank has a powerful research competence which it utilizes to close business deals in hostile circumstances. Being one of the biggest distributors of economic goods. IDFC undertook the responsibility of providing financial support to 332 projects accruing a profit of upto Rs 2. organizational investors. IDFC Initiated in 1997 in Chennai. manufacturing. Bajaj provides an extensive range of investment schemes such as general insurance. IT Services. agri related business. 20. dbs cholamandalam distribution limited and dbs cholamandalam securities limited. cholamandalam dbs operates in 16 international markets. calculated advisory facilities and Private Equity Syndication to its customers ranging from investors to corporates. dbs provides an extensive range of facilities to small and medium sized enterprise. Consumer goods. tourism and others.

mergers & acquisitions and IPO consultation. Asian Development Bank (ADB) possesses 13. After the termination of Unit Trust of India (UTI) Act.. UTI Securities Ltd Endorsed as a self-regulating professional body in 1994. private equity syndication. 46 . arrangement and implementation of deals for their clients in varied sectors and nations. Yes Bank This Investment Banking association is engaged in the classification. Some of the archetypal transactions incorporate divestitures. is one of the renowned investment bank of India. TICL is listed with the Reserve Bank of India under the group of 'Investment Company'. The firm has been offering all sorts of investment associated activities which incorporates investment banking and corporate consultation facilities.84% stakes in equity segment of SBICAPS. The firm's commercial activities constitute mainly of endowing in long-standing investments in equity of the firms in various sectors. the total share fund of UTISEL is now controlled by superintendent of particular enterprise of UTI. Tata Investment Corporation Limited (TICL) A non-banking financial company (NBFC). aiding local firms in capital enlistment endeavors for last many years.SBI Capital Markets SBICAPS is India's foremost investment bank and project consultant. The chief source of return for the firm entails income on investment trading and income accrued on dividend. The firm started it operations in 1986 and is an entirely owned subordinate of the State Bank of India. UTI Securities Ltd.

European market saw a drop of 53% drop in IPOs and 54% drop in convertible bond issuances. universal banks such as the –Citigroup. ICICI.Recent Trends in Investment Banking One of the trends that has been developing in the past few years in the global and Indian investment banking arena.  In 2002. In Europe. IPOs were the main causality with a drop of 34% to $60. there was a drop of 28% in global equity and equity related issuances according to Thomson Financial. is the strong emergence of universal banks ahead of pure investment banks as market leaders. the market focus shifted from fund 47 . These have mostly been from insurance and financial services firms and four of them were IPOs. However. These universal banks have the additional financial muscle of their banking arms that add to their investment banking strengths. This trend could probably reappear in India as well with the emergence of SBI. with just five in the first quarter. IDBI and Kotak Mahindra Bank as strong universal banks. Some recent developments in the investment banking industry as reported in some financial dailies and other press clippings are listed below: International  The Wall Street IPO market has seen the fewest number of issues since 1978 in the calendar year 2003. Globally. JP Morgan Chase and Deutsche Bank are emerging strongly against pure investment banks such as Goldman Sachs and Morgan Stanley. in 2002. The year 2002 has been dubbed as the watershed year in investment banking for over a decade.6 billion. Pure investment banks have found it unmanageable to maintain leadership positions due to difficult market conditions and the economic downturn. pure investment banks such as JM Morgan Stanley and DSP Merrill Lynch still occupied top positions in the investment banking league tables.

 Some of the big universal banks such as JP Morgan Chase took major hits in their private equity businesses due to the technology meltdown.6% market share according to Thomson Financial. Comcast Corp-AT&T Broadband. Goldman arranged the largest IPO of 2002. the $4.1 billion. many investment banks have felt it necessary to spin off their private equity operations into separate entities.5 billion in 2002. Deutsche Bank.  The reported fee of American Investment banks fell by 21% in 2002 to $14. Sonera and Zurich Financial Services are some companies that made rights issues in 2002. Since April 2001. Salomon took the highest fee of around $2 billion followed by the other two with around $1. Philips Petroleum-Conoco and Siemens Robert Bosch-Atccs Mannesmann. The most popular instrument in USA and Europe has been the ‘mandatory convertible’ (fully convertible) bond which is considered as a forward share sales which is superior in nature to a rights issue. Ericsson.  The Citigroup was Wall Street’s top stock and bond underwriter in 2002. Incidentally. 48 . (Tyco International Ltd) unit. AOL Time Warner-AOL Europe.6 billion CIT Group Inc. the total underwriting pie fell by 5% during the same year. Citigroup affiliates Salomon Smith Barney arranged $414 billion of offerings with a 10. the volume of rights issues in Europe rose from $20. However. Due to the meltdown.2 billion each.  Global M&A market was also dull in 2002 witnessing a sharp fall of 47% to stand at $996 billion from $1887 billion in the previous year. Merrill Lynch and CSFB were ranked second and third respectively.  The top IPO investment bank in 2002 was Salomon Smith Barney followed by Goldman Sachs.7 billion to $21. HSBC and Zurich Financial Services are some of these banks. JP Morgan. These are termed as ‘rescue finance’ deals such as rights issue and fully convertible bond issues by troubled companies. which is one of Wall Street’s largest private equity operators with a fund base of $28 billion. generated $130 million in revenues in private equity in 2001 fuelled mainly by the IPO market boom in technology stocks. The biggest deals in 2002 were HP-Compaq. BNP Paribas. Amgen-Immunex Corp. raising through IPOs and public issues to more restructuring deals. Bayer-Aventis Crop Science. 78000 jobs were slashed in this industry in USA accounting for about 10% of the total strength. According to Dealogic.

DSP Merrill Lynch (Rs. Kotak Mahindra (Rs.536 crore) –(as reported in the Economic Times 21st November 2001).16022 crore was rated the top investment bank in India.  In the M&A market. DSP was rated the ‘The Best Domestic Investment Bank’ in India for 2000 by Finance Asia. the year 2002 saw an increase of around 5% in the value of M&A deals in Inda. Arthur Andersen (now part of E&Y. The other players in the big league were ABN-Amro (Rs.5 million GDRs which are listed at Luxembourg Stock Exchange.10460 crore). finance and insurance sectors contributed almost one-third of the total volume. Citibank was the leading depository banks according to Instanex Capital Consultants. National  During the year 2001. Rs. there was only one GDR/ADR issue as compared to 6 in 2001 and 9 in 2000. Hemendra Kothari and Merrill Lynch together held more than 90% of the shares.  DSP-ML de-listed from the stock exchange since its promoters. The deals were mostly in the SME segment with average size not exceeding $25 million. The banking.1719 crore). more than 50% were cross-border deals according to a survey conducted by KPMG Corporate Finance. JM Morgan Stanley which acted as adviser to M&A deals worth Rs. In this market.7130 crore).3532 crore). Rabo India Finance (Rs. This was followed by Bank of New York.  In 2002. Among these. 49 . American investors poured more money into debt mutual funds in 2002 accounting to $133 billion and there were few takers for public issues of equity junk bonds and convertible bonds.833 crore) and Lazard Capital (Rs. This was made by Mascon Global which raised $10 million through issue of 2. This distinction has returned for three years in a row with DSP-ML being named as the ‘Best Domestic Securities House’ and ‘Best Domestic Investment Bank’ for 2002-2003 by Asiamoney (May 2003 issue) and The Asset (January 2003 issue) magazine respectively. Deutsche Bank and JP Morgan. Euromoney voted it ‘Best Domestic M&A House in India’ as well as ‘Best Domestic Equity House in India’ in 2000. Privatization deals also played a significant part.

providing dual benefit services wherein the investors can use the brokerage services of the company for executing the transactions and the depository services for settling them.. Kotak Securities Ltd is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).Largest Distributor of IPO's Finance Asia Award (2004) . Kotak Securities Limited manages assets over 2500 crores of Assets under Management (AUM) The portfolio Management Services provide top class service. with the backing of an expert. The accolades that Kotak Securities has been graced which include: Prime Ranking Award (2003-04) .000 customers and coverage of 187 cities. has been the largest in IPO distribution.70. catering to the high end of the market. Scrotal research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news. Kotak Securities Ltd.com. 50 .India's best Equity House Finance Asia Award (2005)-Best Broker In India The company has a full-fledged research division involved in Macro Economic studies. Kotak Securities has 122 branches servicing more than 1. the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments. Kotaksecurities.CHAPTER 08 CASE STUDY INTRODUCTION Kotak Securities Ltd. Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market. is India's leading stock broking house with a market share of around 8%.

investors who use 51 . 13 branches and over 20 franchisees across India.AREA OF BUSINESS FOR KOTAK SECURITIES Kotak Securities has five main areas of business: INSTITUTIONAL BUSINESS This division primarily covers secondary market broking. mutual funds and specialised structured investment products. The division also incorporates a comprehensive research cell with sectoral analysts who cover all the major areas of the Indian economy. retail investors. Initial Public Offerings. The investment product range at PCS is among the widest in the country and covers debt and equity. CLIENT MONEY MANAGEMENT This division provides professional portfolio management services to high net- worth individuals. Its expertise in research and stock broking gives the Company the right perspective from which to provide its clients with investment advisory services. Since it is also in the broking business. It caters to the needs of foreign and Indian institutional investors in Indian equities (both local shares and GDRs). comprising approximately 7000 agents. DEPOSITORY Kotak Securities is a depository participant with the National Securities Depository Limited and Central Depository Services (India) Limited for trading and settlement of dematerialized shares. This network is used for the distribution and placement of a range of financial products that includes company fixed deposits. and corporates. RETAIL DISTRIBUTION OF FINANCE PRODUCTS Kotak Securities has a comprehensive retail distribution network. trusts. corporates and banks. retail investors. secondary debt and equity and small savings schemes. mutual funds. PRIVATE CLIENT SERVICES Private Client Services (PCS) is a special investment division for High Net-worth individuals. Non-Resident Indian investors.

the greater the returns on your investments. a) Put Call ratios b) Top value traded c) Open interest d) Stock future/Stock options Easy IPO: Invest early for greater returns. Easy Equity: Want your capital to appreciate fast? Invest in Easy Equity. a) Find out NAV of a Scheme 52 . you can enjoy access to a wide range of products and services to help you make the most of your investments. a) Sms Alerts b) Call & Trade c) Top Gainers and Losers notification d) Super multiple e) Portfolio Tracker Easy Derivatives: The higher your risk. a) Forthcoming issues b) New listings c) Call & Trade d) IPO news e) Open issues Easy Mutual Fund: Looking to diversify your risk? Invest in Easy Mutual Fund. They are able to use its brokerage services to execute transactions and its depository services to settle these. PRODUCTS OF KOTAK SECURITIES Once you invest with Kotak Securities.its depository services get a dual benefit.

There’s more to insurance than just security.online and on-phone. Their in-depth research will guide you in making smart investment decisions. Research Reports on the economy.b) View Scheme details c) Mutual fund News d) Compare Schemes e) My portfolio Easy Insurance: Secure your future and your family’s. they have different accounts to suit your needs: KotakGatewayAccount: If you are new to trading. Enjoy higher returns by investing early . a) How does the plan work? b) Advantages of the plans c) Eligibility d)Other Benefits ACCOUNT TYPES The first question in an individuals mind where to open an account Want to start investing? Open an investing account with KOTAK SECURITIES and begin right away. Whether you are a beginner or an expert trader. Research advice via Kotak Securities SMS alerts.through Easy IPO. so you don't miss out on important buying and selling opportunities. select industries and companies help you make informed investment decisions while dealing in Easy Equity. YourBenefits: Kotak Securities Knowledge Center that helps you learns more about stock markets and investments. Kotak Securities opens the gateway to a world of investing opportunities for you . Open the Kotak Securities Gateway Account and get started. 53 .

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