Professional Documents
Culture Documents
Submitted to:
Dr. Tanvir Kabir Chowdhury
Professor
Department of Business Administration
East West University
Submitted by:
Name: Sabiha Tabassom Banna
Course Name: Financial Institutions and Market
Course Code- Fin 335
Section- 01
Semester- Summer’2020
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Chapter 1: Introduction
1.1 Introduction
Southeast Bank Capital Services Ltd. (SEBCSL) is a subsidiary of Southeast Bank Limited
(SEBL). SEBL obtained Merchant Banking License from Bangladesh Securities and
Exchange Commission (BSEC) to operate merchant banking activities on April 06, 2009. It
started commercial operation from August 17, 2009. In accompanying with legal provisions
and regulatory requirements. SEBCSL was formed as a public limited company on
September 23, 2010 to continue providing merchant banking services. It is a highly
capitalized merchant banking company. The services that the company provides are Portfolio
Management, Underwriting to the IPO and Rights Issue, Issue Management Services,
Corporate Advisory Services, etc.
Merchant banks mainly work with small-scale enterprises, corporations that are unable to raise
funds through an initial public offering (IPO) by providing, bridge financing, equity financing,
and corporate credit products. They also issue and sell securities on behalf of corporations
through private placements to refined investors who require less regulatory expression. Large
merchant banks place equity privately with other financial institutions by acquiring a
considerable share of ownership from companies with a significant potential for high growth rate
to mark the gap between venture capital and public stock.
Securities companies like merchant bank, investment bank have to follow some steps and this
are:
1. Participated as brokerage
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4. Help to issue IPO, which provide advisory services.
5. They mainly two types of financing one is risk financing and another is under-writing. In
risk financing there is no guarantee to sell the share by IPO, commission is less, risk is
more. Where in under-writing security firm give guarantee to sell the share by IPO, more
commission is provided, risk is less.
There are some functions which is followed by merchant banking services. Merchant Banking
functions are:
Project management.
Portfolio management.
Leasing services.
Corporate restructuring.
The Bank had been widely praised by the business community, from small entrepreneurs to large
traders and industrial including the top rated corporate borrowers looking forward for its
business outlook and innovative financial solutions. Thus within this very short period of time, it
has been able to create an image and earn significant reputation in the country’s banking sector
as a Bank with Vision. Presently, it has nineteen branches in operation. The Bank is take into
consideration to open other branches in important financial centers of the country. Southeast
Bank Limited has been licensed by the Government of Bangladesh as a Scheduled Bank in the
private sector in function of the policy of liberalization of banking and financial services and
facilities in Bangladesh.
3.2 vision:
To be a premier banking institution in Bangladesh and contribute significantly to the national economy.
It has been developing its position and preparing itself for the new millennium by upgrading
technology, training its work force, restructuring organizational strategy and creating a new work
culture.
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3.3 Missions and Objectives
Providing services with high degree of professionalism and use of modern technology.
Create long - term relationship based on mutual trust.
Respond to customer needs and demands with timely and accurately.
Share their values and beliefs with their customers.
Grow as their customers grow.
Provide products and service at competitive pricing.
Ensure safety and security of customer valuables.
Products
Deposit Schemes
Saving (SB)
Short Term Deposit (STD)
Fixed Deposit
Loan Schemes
Services:
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Issue Management
Underwriting
Portfolio Management
Pre-IPO Placement
Issue management: Issue Management is the vital task of a Merchant Bank which helps capital
market to increase the supply of securities. As an issuer manager they are providing assistance to
the private limited companies intended to be converted into public limited companies by
obtaining necessary permission from the relevant authorities. They are preparing prospectus for
public issues of shares and debentures by involving itself in the collection application money,
scrutiny of application, arranging for lottery relating to allotment.
Under-writing: they maintain underwriting to IPO Shares and debentures offered by public
limited company. They always encourage the high fundamentals issues to offer shares to general
public for participation in country’s economic growth. Through this underwriting they give the
guarantee to sell the share by IPO which is less risky. They also underwrite to the issuance of
right shares.
Portfolio Management:
High quality services.
Easy account opening.
Competitive interest rate.
Low management fee.
No hidden charge.
Margin facility.
Hassle free account maintenance.
Consulting with portfolio offices.
Both stock exchange trading facility.
High confidentiality of business.
Trade over phone or e-mail.
Portfolio report sent by mail.
Money deposit from any Branch.
Fund withdrawn within 10 minutes.
Long term relationship with customers.
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Regular customer awareness program.
Regular market analysis for investors.
Research of company fundamentals.
Hassle free IPO application.
Pre-IPO Placement: They are providing services to raise fund through the Pre-IPO placement.
Where Placement of some percentage of an initial public offering (IPO) with prior investors,
prior to the IPO. Through this the price of shares will be lower, attracting
large investments by private equity. They also arrange Pre-IPO placement shares for their
portfolio clients.
3.6: Management of SEBL:
For any financial or non-financial organization, management are the most valuable and important
resources for any kind of organization. For a well-organized management provides the
organization to reach its ultimate goal. Management means planning, organizing, staffing,
directing and controlling of all financial and non- financial recourses of an organization.
Different aspects of management practices in SEBL are discussed in below:
Planning:
SEBL have done its planning within the preview of the corporate plan. The overall planning
approach in SEBL is top to down process. Each branch set plan according to the goal imposed by
the corporate level. It doesn’t make plan independently. And another thing is SEBL has a
planning division. This is mainly responsible for the overall planning.
Organizing:
SEBL is organized as per the existing business locations. Each of it’s branch has a separate
entity. Each unit is responsible for its performance and each is headed at least by a senior
assistant, vice president in designation which is followed by manager. He is directly responsible
for the performance of their unit. Within each of the branch, it is organized functionally.
Staffing:
The recruitment in SEBL is done in two ways. One as a “provisional officer” for the
management program and it has a probation period of minimum two years. Another one is non-
management level as “trainee officer”. Provisional officers are recruited in officer category and
their career is headed towards in different managerial jobs.
Directing:
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The management approach in SEBL is top to down. Each information just seeks through lower
management level. Works are designed in such a way that one cannot leave without clearing the
task as he is assigned for his work in daily basis. Sitting arrangement in all office is done in such
a way that the superior can monitor the subordinate all time. Management and manager operation
all time watch the operation of the bank through CC camera. Security is maintained so properly.
Budgeting, rewarding, punishing are also practices as control program.
Controlling:
SEBL doesn’t believe in the traditional banking. It always tries to increase and maintain its
market share in the private banking sector through two types of control techniques:
Feedback control technique monitor output is a process and feed into the system to obtain
desired outputs. On the other hand feed control technique monitors inputs into a process to
determine adversity these are as planned, if they are not then the inputs are changed in order to
get the desired result.
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5. Bank Statement or Bank Certificate.