What is the meaning of Merchant Banking?


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Merchant Banking

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Merchant Banking-

A merchant banker is an institution that helps companies to raise capital.

Merchant bankers facilities the issue process and their activities are termed as “merchant Banking”

Merchant banker’s facilitates the issue process and their activities are termed as ‘Merchant Banking’.

Merchant banking can be classified as

  • Fees based merchant banking (don’t take B/S position)
  • Fund based merchant banking (take B/S position)

Function and service-

  • Consultancy service
  • Government consent
  • Raising financial recourse
  • Project planning and feasibility study

Merchant banking is result oriented profession, commanding high degree of skill in solving business problem, assisting in investing and financial decision making.

Merchant banking in India started with management of public issue and loan syndication.

It has been slowly and gradually covering activity like “Project Counseling”; “Investment counseling”; “Portfolio Counseling” and merger and amalgamation if corporate firms.

 

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