MERCHANT BANKING

A MERCHANT BANK IS A FINANCIAL INSTITUTION WHICH PROVIDE CAPITAL TO COMPANIES IN THE FORM OF SHARE OWNERSHIP INSTEAD OF LOANS. A MERCHANT BANK ALSO PROVIDE ADVISORY ON CORPORATE MATTERS TO THE FIRMS THEY LEND TO. IN THE UNITED KINGDOM ,THE TERM “MERCHANT BANK” REFERS TO AN INVESTMENT BANKS

ACCORDING TO THE U.S. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC), “THE TERM MERCHANT BANKING IS GENERALLY UNDERSTOOD TO MEAN NEGOTIATED PRIVATE EQUITY INVESTMENT BY FINANCIAL INSTITUTIONS IN THE UNREGISTERD SECURITIES OF EITHER PRIVATELY OR PUBLICALLY HELD COMPANIES.

MERCHANT BANKING ACTIVITIES

ISSUE MANAGEMENT – MANAGEMENT OF PUBLIC ISSUE i.e. IPOs , FPOs , RIGHT ISSUE etc.

BANKERS TO THE ISSUEPAYMENT OF DIVIVENDDEBENTURES TRUSTEEUNDERWRITINGMONITERING AGENCY

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