A PROJECT SUBMITTED

IN PART COMPLETION OF

T.Y.B.COM (BANKING & INSURANCE)

SEMESTER-V
2010-2011

TO

UNIVERSITY OF MUMBAI

BY

MODI SAGAR

UNDER THE GUIDANCE OF

PROF. SAURABH SHAH

M.K.SANGHVI COLLEGE OF COMMERCE &ECONOMICS

VILE PARLE (WEST)
MUMBAI - 400056
 DECLARATION

I Mr. MODI SAGAR B student of T.Y.B.Com (Banking &

Insurance- Semester V) of Malini Kishor Sanghvi College of Commerce &
Economics, hereby declare that I have completed the project on
“INVESTMENT BANKING” in the academic year 2010-2011. The
information submitted is true and original to the best of my knowledge.

Date of submission Signature of Student

---------------------- --------------------
 CERTIFICATE

This is to certify that the study presented by Mr. MODI SAGAR B Student

of T.Y.B.Com (BANKING & INSURANCE – SEMESTER-V) of Malini

Kishor Sanghvi College of Commerce & Economics in part completion of

course under the title “INVESTMENT BANKING” has been done under my

guidance .The project is in the nature of original work that has not so far

been submitted for any course of this Institute or any other Institute.

References of work and relative sources of information have been given at

the end of the project.

Signature of Principal Signature of Project Guide

(Dr. Krushna Gandhi) (Mr. Saurabh Shah)

Signature of Co-ordinator

(Purvi Dholakia)

College seal Signature of External Examiner

 ACKNOWLEDGEMENT

Every successful venture emerges from the perseverance of some and the

good wishes of many. With a deep sense of pride, satisfaction and gratitude,

I present my project report on "INVESTMENT BANKING". At this

juncture, I feel deeply obliged to the most respected, Dr. Krushna Gandhi

Principal of our Institute who provided me the required Infrastructure &

guidance.

This project could not have seen the light of the day without the inspiring of

Prof. Saurabh Shah who guided me like a beacon in the dark. I would like

to thank him for giving me his valuable time, suggestions and practical

views throughout my project work, without which the completion of the

project would have been a difficult journey.

Last but no the least, I would like to thank my professor and guide,

Prof. Purvi Dholakia, for assisting me and supporting me throughout my

training.

Finally, I would like to end this acknowledgement by emphasizing on

something that I have learned from my interaction with people throughout my

project.

"No effort or Knowledge ever gained is wasted"

 EXECUTIVE SUMMARY

Investment Banking is a system under which banks arrange

long-term funds for business and industry. They work both as
financiers as well as underwriters. As financiers they themselves
provide long-term funds to business and industry. As underwriters
they work as middlemen between Business Corporation and
investors. They undertake the responsibility of selling shares or
debentures of the corporation to the general public for commission.
In the absence of failure of the public to subscribe in full, they take
the unsubscribed portion of the shares or debentures underwritten
by them. Investment banks create securities, including stocks and
bonds, for themselves and other companies, and facilitate the trade
in them. They also help companies manage mergers and
acquisitions. The primary role of investment banking in the
economy has traditionally been to help businesses raise capital for
their operations by selling investment securities to the general
public.
 Table of Contents

S. N. PARTICULARS PAGE No.

1. Introduction 1

2. The Indian scenario 6

3. Role of investment bank 8

4. Function of investment banking 10

5. Main activities of investment banking 14

6. Risk in investment banking 17

7. The Golden Years of Investment Banking 23

8 Types of investment banking 24

9 Global industrial structure 30

10 Service provide by investment bank 34

11 Failure of investment banking 36

12 Investment banking: past ,present, future 39

13 Top 10 Indian Investment bank 43

14 Investment Banking and Merchant Banking 52

15 Regulatory Framework For Investment Banking 55

16 Role of investment banker 58

17 Need of investment banking 63

18 Recent trends in investment banking 66

19 conclusion 70

20 Bibliography 71