STANDARD CHARTERED AS A MERCHANT BANK

Presented By: Saurabh Chhapria(61) Shoaib Khan(63) Shoaib Rehman(64) Smita Rani(65)

MERCHANT BANK
A Merchant Bank is a financial institution or an organization that underwrites corporate securities and advices clients on issues like corporate mergers, etc. involved in the ownership of commercial ventures. In simple words It is a bank which arranges loan to companies, deals in international finance, buys and sells shares and launches new companies on the stock exchange, but does not provide normal banking services to the general public.

ORIGIN OF MERCHANT BANKING



The term merchant banking originated from the London who started financing foreign trade through acceptance bills

 

Later they helped government of under developed countries to raise long term funds Later these merchant formed an association which is now called Merchant Banking and Securities House Association

Foreign banks like National Grindlays Bank (1969) started in India .

 Public issues and financial Consultancies.  

State Bank of India (1972) Later ICICI set up its merchant Banking Division followed by Bank of India, Bank of Baroda, Standard Chartered, etc..

Introduction Of Standard Chartered

Founded Headquarters Key people -Industry Products Operating Profit Profit before taxation --1853 -- London John Peace (Chairman) -- Banking -- Financial Services -- $17461.6m (2011) -- $5923.65m (2011)

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Branches - 1700 (world) - 90 (India) - Mumbai

Head quarter in India

SERVICES OF MERCHANT BANKING

Management of Debt and Equity offerings. Promotional activities. Placement and distribution. Corporate advisory services.

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Project advisory services. Loan syndication. Non resident investment. Advisory services relating to Mergers & Acquisition.

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Foreign currency finance. Portfolio management.

QUALITIES REQUIRED OF MERCHANT BANKERS

 Ability to analyse  Abundant knowledge  Ability to built up relationship  Innovative approach  Integrity

GUIDELINES FOR MERCHANT BANKERS

 SEBI s authorization is must to act as merchant bankers.  authorization criteria include
Qualification. Infrastructure. Capital adequacy. Transactions.

 Report submission to SEBI.  Prohibition from buying Securities.  Power of SEBI.  Appointment of Compliance officer.  Collected by SEBI.

SCOPE FOR MERCHANT BANKING IN INDIA

 Growth of new issues market  Entry of Foreign Investors  Changing policy of Financial Institutions  Development of debt market  Innovations in Financial Instruments  Corporate Restructuring  Disinvestment