Article,

Significance of Merchant Banking in India

, and .
Imperial Journal of Interdisciplinary Research, (2017)

Abstract

Merchant banking covers wide range of financial activities and in-process include a number of different financial institutions. Merchant banks are popularly called “Accepting and issuing houses”.  Because a merchant bank acts not only as an advisor and broker but also as a principal, a merchant bank has a longer term approach than a typical investment bank and is highly concerned with the viability of each investment opportunity and providing the right advice for a strong partnership with each client company. In banking, a merchant bank is a traditional term for an Investment Bank. It can also be used to describe the private equity activities of banking. Merchant banking is an important service provided by a number of financial institutions that helps in the growth of the corporate sector which ultimately reflects into the overall economic development of the country. Merchant banks were expected to perform several functions like issue management, underwriting, portfolio management, loan syndication, consultant, advisor and host of other activities. Merchant banking is a combination of banking and consultancy services.  

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