Isuues management
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The document defines a merchant banker according to rules set by the Ministry of Finance in India as someone engaged in the business of issue management, including arranging securities deals and providing advisory services related to issues. It then provides background on the history of merchant banking, the main services provided, who can operate as a merchant banker in India, requirements for setting up a merchant banking business, and registration requirements and guidelines.
Isuues management
- 1. A C C O R D I N G T O S E B I M E R C H A N T B A N K E R S R U L E S 1 9 9 2 & T H E N O T I F I C A T I O N O F T H E M I N I S T R Y O F F I N A N C E T H E M E R C H A N T B A N K E R I S : - A N Y P E R S O N W H O I S E N G A G E D I N T H E B U S I N E S S O F I S S U E M A N A G E M EN T E I T H E R B Y M A K I N G A R R A N G E M E N T S R E G A R D I N G S E L L I N G , B U Y I N G O R S U B S C R I B I N G T O S E C U R I T I E S A S M A N A G E R - C O N S U L T A N T , A D V I S O R O R R E N D E R I N G C O R P O R A T E A D V I S O R Y S E R V I C E S I N R E L A T I O N T O S U C H I S S U E M A N A G E M E N T . Introduction
- 2. HISTORY Merchant banking started in Italy in late medieval times Reached in France during the seventeenth century Italian merchant bankers introduced Merchant banking into England in eighteenth century European bankers developed merchant banking In USA In 1967, National Grindlays Bank started merchant banking in India In 1972, merchant banking started in South Africa
- 3. Main Services Provided By Merchant Banks Project Counselling Loan Syndication Managers to Issue Underwriting Portfolio Management Non-Resident Investment Advising On Mergers And Take-Over Arranging Offshore Finance Corporate Restructuring
- 4. Who can be Merchant Banker? Private sector International Public sector banks
- 5. Requirements For Setting Up A Merchant Bank Formation of the business organization Adoption of a viable business plan Registration of merchant bankers
- 6. Registration of Merchant Bankers Application for grant of certificate Furnishing of information, clarification and personal representation Consideration of application Grant of a certificate Payment of fees and the consequences of failure to pay fees
- 7. Then Citibank in1970Foreign bank National Grindlays Bank started merchant banking in 1967Merchant Banking In India & Later ICICI set up its merchant Banking Division followed by BankState Bank of India in 1972 started merchant banking of India, Bank of Baroda, Canara Bank etc..
- 8. Main Merchant Banking companies ICICI Securities SBI capital markets ltd Punjab national bank Axis Bank Ltd Bajaj Capital Ltd Bank of Reliance Public Maharashtra Karur Vysya bank ltd Private Securities Limited State Bank of Bikaner and Jaipur. Sector Kotak Mahindra Capital IFCI financial services ltd. Company Ltd Yes Bank Ltd
- 9. Key Foreign Players Goldman Sachs (India) Securities Pvt. Ltd. Morgan Stanley India Company Pvt. Ltd. Barclays Securities (India) Pvt. Ltd. Bank Of America Citigroup Global Markets India Pvt. Ltd. DSP Merrill Lynch Ltd.
- 10. Merchant Banking structure in India Merchant banks INTERNATIONALPUBLIC SECTOR PRIVATE SECTOR BANKS(10) COMMERCIAL BANKS (10) BANKS (24) FINANCIAL FINANCE AND INSITUTION (6) INVESTMENT (231) STATE INSITUTIONS (4)
- 11. Guidelines for merchant bankers The Merchant Banker should have a professional qualification Should comply with the SEBI regulations and submit reports accordingly The Merchant Banker will be suspended if found violation of guidelines Proper fees should be collected by SEBI Proper information should be given when inspection by SEBI