What is nature and scope of merchant banking?

What is the Scope and nature of merchant banking in India?

The scope and nature of merchant banking in India is investment banking. A merchant banker is used as an intermediary to match a company that needs capital to those that have capital.

Problems and the scope of merchant banking in India in brief?

The mishandling of funds has been the scope of problems that has been seen in India's merchant banking. A more limited amount of financial managements could solve the problem.

What is the objective of Merchant Banking?

objective of merchant banking

Any example for merchant banking in India?

merchant banking example

What are the problems in merchant banking?

The problem with merchant banking is not allowing youthful professionals into the merchant banking business. Even though merchant banking is vast it needs more acceptable expertise to provide more services.

Nature of merchant banking?

The merchant banking aims at providing financial capital to companies. These capitals are in the form of shares and not loans. These merchant banks also give guidance on corporate affairs upon lending the money. A merchant bank is nothing but a financial institution also referred to as an investment bank.

What are the merits and demerits of merchant banking?

Merchant banking provides services that businesses need. One disadvantage to merchant banking is that it is a little more expensive than personal banking,

What are the scopes of merchant banking?

Merchant Banking is commercial banking and investment banking for commercial entities, such as factoring, a forfait, placement of equity and debt, merger & acquisition etc. It is not your general bank account, credit cards or mortgages

Merchant banking in India?

Merchant Banking refers to negotiated private equity investment by financial institutions in the unregistered securities of either privately or publicly held companies. A bank that offers these services is called a merchant bank. Both commercial and investment banks may engage in merchant banking activities. The original purpose of merchant banks was to facilitate and/or finance production and trade of commodities and hence the name "merchant"

What is the procedures of merchant banking?

Merchant Banking refers to negotiated private equity investment by financial institutions in the unregistered securities of either privately or publicly held companies. A bank that offers these services is called a merchant bank. Both commercial and investment banks may engage in merchant banking activities. The original purpose of merchant banks was to facilitate and/or finance production and trade of commodities and hence the name "merchant"

What are the recent developments and challenges in merchant banking?

2.3.5 Recent Developments in Merchant Banking and Challenges AheadThe recent developments in Merchant banking are due to certain contributory factors in India.They are.1.The Merchant Banking was at its best during 1985-1992 being when there were many new issues. It is expected that 2010 that it is going to be party time for merchant banks, as many new issue are coming up2.The foreign investors - both in the form of portfolio investment and through foreign direct investments are venturing in Indian Economy. It is increasing the scope of merchant bankers in many ways.3.Disinvestment in the government sector in the country gives a big scope to the merchant banks to function as consultants.4.New financial instruments are introduced in the market time and again. This basically provides more and more opportunity to the merchant banks.5.The mergers and corporate restructuring along with MOU and MOA are giving immense opportunity to the merchant bankers for consultancy jobsHowever the challenges faced by merchant bankers in India are1.SEBI guideline has restricted their operations to Issue Management and Portfolio Management to some extent. So, the scope of work is limited.2.In efficiency of the clients are often blamed on to the merchant banks, so they are into trouble without any fault of their own.3.The net worth requirement is very high in categories I and II specially, so many professionally experienced person/ organizations cannot come into the picture.4.Poor New issues market in India is drying up the business of the merchant bankers

Role of merchant banking in economy?

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