What is Merchant Banking ? ( Meaning, Role of Functions and General Obligations)

What is Merchant Banking ? 

( Meaning, Role of Functions and General Obligations)

What is Merchant Banking ? 

Meaning of Merchant Banking :- 

Merchant bank is an institution or an organisation which provides a number of services including management of security issues, portfolio management services, underwriting capital issues, insurance, financial advises and project counselling etc.

Role of Functions of Merchant Banking:-

1. Issue management. 

2. Pre investment studies for investors. 

3. Corporate counselling. 

4. Project finance. 

5. Working capital. 

6. Underwriting. 

7. Portfolio management. 

8. Venture capital. 

9. Lease financing. 

General obligations and responsibilities of Merchant Banking:- 

1. Not to associate with any business other than that of securities market.

2. Maintenance of books of accounts record etc. 

3. Appointment of lead management banker. 

4. Commission of half yearly result. 

5. Acquisition of shares. 

6. Information to the board. 

7. Disclosure to the board. 

© ASHISH COMMERCE CLASSES

THANK YOU.