A

Synopsis of

“A Study on Merchant Banking with respect to

Economy of India.”

Submitted to

Dr. Homi Bhabha State University for partial completion

of degree of Bachelor of Commerce (Banking and

Insurance)

Under the Faculty of Commerce

By

HARSH SINGH
TYBBI-B
Roll no:

Under the Guidance of

Dr. JHARNA KALRA

SYDENHAM COLLEGE OF COMMERCE AND

ECONOMICS, B-ROAD, CHURCHGATE,

MUMBAI-400002

September 2023
 TABLE OF CONTENTS

Sr. No. Title of the Chapters Page No.

1. CHAPTER 1
INTRODUCTION 3

2. CHAPTER 2
LITERATURE REVIEW 4

3. CHAPTER 3
PROBLEM DEFINITION 5

4. CHAPTER 4
HYPOTHESIS 5

5. CHAPTER 5
OBJECTIVES 6

6. CHAPTER 6 7
SCOPE &
LIMITATIONS

7. CHAPTER 7
METHODOLOGY
7.1. Research Design 8
7.2. Types of Research 8
7.3. Time Period of Research 8
7.4. Universe of Design 8
7.5. Sample Size 9
7.6. Method of Research 9
7.7. Limitations of the Study 9
7.8. Research Instrument 9
7.9. Statistical tool 9
8.
REFERENCES 10
 A Study on Merchant Banking with respect to Indian Economy.

CHAPTER 1

INTRODUCTION

Merchant banking is a type of financial service that does more than regular
banking. It helps businesses in various ways, like getting money, offering
financial advice, handling investments, and assisting with company deals.
Merchant banks act as middlemen between companies that need cash and people
who want to invest. They're essential in finance because they help businesses
grow and manage their money well. In simple terms, merchant banking is about
giving businesses financial help and advice to help them succeed.

Merchant banking is a vital part of India's financial world, and it's especially
interesting when we focus on the private sector. These private sector banks have
become important players in India's fast-growing economy. They help companies
raise money and provide expert advice on various financial matters.

The growth of private sector merchant banking in India is linked to the country's
economic changes that started around the 1990s. These banks are not your typical
banks; they do more than just hold your money. They help businesses find
funding and assist with things like buying or merging with other companies.
Their role has not only boosted India's economy but has also made its financial
markets more efficient and competitive. This is a fascinating area to study, given
its impact on India's economic landscape.

Private sector merchant banks in India wear multiple hats. They are financial
intermediaries that connect companies looking for funds with investors looking
for investment opportunities. These banks help businesses raise capital through
methods like Initial Public Offerings (IPOs), private placements, and bond issues.
Additionally, they offer advisory services, guiding companies on mergers,
acquisitions, and restructuring strategies to optimize their financial performance.

The rise of private sector merchant banking in India can be attributed to the
country's economic liberalization policies, which were initiated in the early
1990s. These policies aimed to open up the Indian economy to foreign
investments, reduce government control, and promote private sector
participation. This environment created opportunities for private merchant banks
to flourish by providing innovative financial services and solutions.

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 A Study on Merchant Banking with respect to Indian Economy.

CHAPTER 2

REVIEW OF LITERATURE

Siddhartha, N. S. (2013):-
The given research paper is about the role of merchant banking in Indian Capital
Markets and the research concludes that merchant banking plays a vital role in
the country's financial market by offering services like underwriting and
advisory, making it easier for companies to access capital and grow.

Dave, S. A., & Gujjar, D. R. (2012):-

The following research paper is about the emerging trends and challenges of
merchant banking in India and it describes that merchant banking in India is
changing with more digitalization and expansion into fintech and wealth
management. However, it faces challenges like dealing with new regulations,
protecting against cyber threats, and competing for customer trust.

Nirgude, M. B., & Joshi, P. V. (2015):-

The given research paper is about impact of merchant banking services on the
Indian Capital Markets and the study concludes that merchant banking services in
India play a pivotal role by aiding companies in raising funds and offering
financial guidance. This contributes to market stability and economic growth, but
challenges like regulatory compliance and investor trust must be managed
effectively.

Dixit, S., & Pandey, R. (2013):-

The aforementioned research paper is about the role of merchant banks in Indian
Economy and the research has concluded that merchant banks in India have a
critical role in the economy, facilitating capital formation and providing financial
advice to foster business growth.

Chavan, S. (2017):-
The following research paper is about merchant banking being a catalyst to
economic growth of India and the study concludes that merchant banking acts as
a catalyst for India's economic growth by enabling businesses to access capital
and offering financial advice. This supports business expansion and job creation,
contributing to a more dynamic economy.

1
Siddhartha, N. S. (2013). “Role of Merchant Banking in Indian Capital Market.”
2
Dave, S. A., & Gujjar, D. R. (2012). “Merchant Banking in India: Emerging Trends and Challenges.”
3
Nirgude, M. B., & Joshi, P. V. (2015). “Impact of Merchant Banking Services on Indian Capital Market.”
4
Dixit, S., & Pandey, R. (2013). “The Role of Merchant Banks in the Indian Economy.”
5
Chavan, S. (2017). “Merchant Banking: A Catalyst to Economic Growth in India.”

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 A Study on Merchant Banking with respect to Indian Economy.

CHAPTER 3

PROBLEM DEFINITION

Private sector merchant banking is like a hot topic in India's financial world right
now, and it's interesting for good reasons. These banks seem to be like financial
superheroes, making India's economy grow and change. But there are some big
questions we need answers to. This research project wants to uncover the secrets
of private sector merchant banking in India. It wants to find out how much these
banks really help our economy, whether they make our money systems work
better, and if they come up with cool new ideas for handling money. We're also
wondering if the rules they have to follow need a makeover and if they're good at
helping businesses use their money wisely.

By digging into these questions, this research project hopes to give us a clearer
picture of what private sector merchant banking means for India. And who
knows, maybe it will give us some ideas that can help make our country's money
systems work even better and help all of us understand how money works in our
economy.

This research project aims to address these questions and provide valuable
insights into the role of private sector merchant banking in India's economic
development. By exploring their contributions to economic growth, market
efficiency, innovation, and regulatory dynamics, this study seeks to shed light on
the multifaceted influence of these banks. Ultimately, it aspires to uncover
potential areas for improvement in India's financial landscape, fostering a deeper
understanding of the nation's economic dynamics and the workings of its
financial institutions.

CHAPTER 4

HYPOTHESIS

HYPOTHESIS 1 (H0):-
Private sector merchant banking has limited positive effects on the Indian
Economy.
HYPOTHESIS 2 (H1):-
Private sector merchant banking strongly contributes to India's economic growth,
enhances market efficiency, and drives financial innovation.

CHAPTER 5
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 A Study on Merchant Banking with respect to Indian Economy.

OBJECTIVES OF THE RESEARCH

 Boosts the Economy:

To find out how these banks help India's economy grow by supporting
businesses.

 Making Markets work Better:

To study if private banks make buying and selling easier for people and if
they make markets run smoother.

 Rules and Laws:

To understand the rules and laws they have to follow.

 Helping Companies:
To learn how they assist companies during mergers and acquisitions.

 Economic Impact:
To find out how these banks affect the Indian economy by creation of
various Job opportunities.

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 A Study on Merchant Banking with respect to Indian Economy.

CHAPTER 6

SCOPE & LIMITATIONS

The following is the scope of this research project:

 Assessment of Impact on the Indian Economy: To understand and

assess the impact of private merchant banking with respect to Indian
Economy.

 Contribution to the Indian Economy: To study the contribution of

private sector merchant banking in Indian Economy.

 Aids to companies: To find out about the help provided by the merchant
banks to private institutions during mergers/acquisitions and other business
activities.

The following are the limitations to this research project:

 Geographical: The project is bound within the boundaries of Sydenham

College of commerce and Economics.

 Authenticity: The authenticity of the data collected can’t be assured as

many of the respondents may enter fake/untrue data while filling the
forms.

 Duration: The duration of the project is very short that being 2 weeks.

 Restriction: The project is capped at 50 respondents only so the data may

vary when taken on a large scale and the conclusion may differ.

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 A Study on Merchant Banking with respect to Indian Economy.

CHAPTER 7

RESEARCH METHODOLOGY

Research Methodology is the process used to collect information and data for the
purpose of making business decisions.

It refers to the specific procedures or techniques used to identify, select, process,

and analyze information about this topic. In a research paper the methodology
section allows the reader to critically evaluate a study’s overall validity and
reliability. The methodology section answers the two main questions such as
how the data was generated and how it was analyzed. The main purpose of
research methodology is to encourage the spirit of enquiry and it also fulfils the
mandatory requirements prescribed for a particular research study.

7.1. Research Design

Research design is the framework of research methods and

techniques chosen by the researcher. The design allows the
researcher to hone in on research methods that are suitable for the
subject matter and set up his studies for success.

7.2. Type of Research

The present study topic is going to be based on Descriptive

Research and Exploratory Research.

7.3. Time Period of Research

The research would be conducted over a period of 2 weeks.

7.4. Universe of Design

The universe of design for this study includes the students of

Sydenham College of Commerce and Economics.

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 A Study on Merchant Banking with respect to Indian Economy.

7.5. Sample Size

The sample size of this study is students of Sydenham College of

Commerce and Economics, currently pursuing 3rd year
undergraduate degree. Capped at 50 respondents only.

7.6. Method of Research

This research would be conducted using the Random Sampling

Method.

7.7. Limitations of the Study

 The research is limited to private sectors banks only.

 The time stipulated for the project is very short.

7.8. Research Instrument

For the given study a Questionnaire is going to be used as the

Research Instrument for the purpose of collection of data.

7.9. Statistical Tool

The statistical tool used in this research is percentage.

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 A Study on Merchant Banking with respect to Indian Economy.

REFERENCES/BIBLIOGRAPHY

www.researchgate.net
en.wikipedia.org
scholar.google.com

Siddhartha, N. S. (2013). Role of Merchant Banking in Indian Capital Market.

International Journal of Scientific and Research Publications, 3(10), pp.1-4.

Dave, S. A., & Gujjar, D. R. (2012). Merchant Banking in India: Emerging

Trends and Challenges. Journal of Commerce, 4(1), pp.21-28.

Nirgude, M. B., & Joshi, P. V. (2015). Impact of Merchant Banking Services on

Indian Capital Market. International Journal of Management Research &
Review, 5(1), pp.51-59.

Chavan, S. (2017). Merchant Banking: A Catalyst to Economic Growth in India.

International Journal of Scientific Research and Management, 5(1), pp.18-22.

Dixit, S., & Pandey, R. (2013). The Role of Merchant Banks in the Indian
Economy. International Journal of Scientific Research and Management, 1(5),
pp.212-218

Rani, M., & Venkatesh, G. (2013). Merchant Banking in India: An Overview of

Opportunities and Challenges. International Journal of Scientific and Research
Publications, 3(3), pp.1-4.

Sathyanarayana, K. V., & Manjula, M. (2017). Impact of Merchant Banking on

Indian Capital Market. International Journal of Business and Administration
Research Review, 1(2), pp.21-28.

Rani, N., & Som, B. K. (2018). Role of Merchant Banking in Indian Financial
Services Sector. International Journal of Innovative Research and Review, 6(2),
pp.8-17.

Ramanathan, A., & Ashok, P. (2015). A Study on the Impact of Merchant

Banking on Indian Capital Market. International Journal of Management, IT, and
Engineering, 5(9), pp.109-121.

Signature of Student Signature of Guide

HARSH SINGH DR. JHARNA KALRA
Sydenham College of Commerce and Economics 10