MERCHANT BANKING

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BY ARPIT AGRAWAL

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WHAT IS MERCHANT BANKING?

Merchant Banker has been defined under the Securities & Exchange Board of India (Merchant Bankers) Rules, 1992 as "any person who is engaged in the business of issue management either by making arrangements regarding selling, buying or subscribing to securities as manager, consultant, advisors and 4/28/12 portfolio managers.

FUNCTIONS OF MERCHANT BANK

Project Counselling Issue Management Underwriting of Public Issue Managers, Consultants or Advisers to the Issue Portfolio Management Advisory Service Relating to Mergers and Takeovers
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GROWTH OF MERCHANT BANKING IN INDIA

Merchant Banking, as a commercial activity, took shape in India through the management of Public Issues of capital and Loan Syndication . It was originated in 1967 with the setting up of the Merchant Banking Division by ANZ Grindlays Bank.
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The main service offered at that time to the corporate enterprises by the merchant banks included the management of public issues and some aspects of financial consultancy. The early mid-seventies witnessed a boom in the growth of merchant banking organizations in the country with various commercial banks, financial institutions, broker's firms 4/28/12 entering into the field of merchant

Measures were initiated in the capital market from 1992, starting with the conferring of statutory powers on the Securities and Exchange Board of India (SEBI) and the repeal of Capital Issues Control Act and the abolition of the office of the Controller of Capital Issues. These have brought about significant improvement in the functional and regulatory efficiency of the market, 4/28/12 enabling the Merchant Bankers

SEBI RULES AND REGULATIONS

No institution can act as a merchant banker if it is not having certificate of registration of SEBI. The merchant banks should follow the rules and regulations made by SEBI The merchant banks should pay the amount for registration and renewal. The merchant should take important 4/28/12 steps for redressal of grievances of

CATEGORY I

CATEGORY OF MERCHANT BANKERS

CATEGORY II

Issue management, Advisor , consultant,manager underwriter , portfolio manager Advisor , consultant,comanager, underwriter , portfolio manager Advisor , consultant,underwriter Advisor, consultant

CATEGORY III
4/28/12 CATEGORY IV

CATEGORY I

CATEGORY OF MERCHANT BANKERS ON THE BASIS OF MINIMUM NET WORTH

CATEGORY II

INR 50,000,000 INR 5,000,000

CATEGORY III INR 2,000,000 CATEGORY IV NIL

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CANCELLATION OF CERTIFICATE OF REGISTRATION

Deliberate manipulation Indulgence in fraud Deterioration of financial condition of the merchant bank

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CANARA BANK IS ONE OF THE LEADING MERCHANT BANKER IN INDIA IT PROVIDES ISSUE MANAGEMENT SERVICES SUCH AS PROJECT APPRAISAL, 4/28/12 CAPITAL

PUNJAB NATIONAL BANK ALSO OFFERS ISSUE MANAGEMENT SERVICES, PROJECT APPRAISAL , CORPORATE
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THAN K YOU
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