rohith
asked
Hi I am one of the CA student. I want to know about capital market. Can I know, What functions does the Merchant bank perform when a company wants to raise funds from intermediaries?
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narahari
answered
Bank offering different services to the public/private companies is known as merchant bank. It includes both commercial and investment banks.
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narahari
answered
Hi,
Merchant bank is used in the case of private equity investment where unregistered securities of either privately or publicly held companies are also involved in it. Bank offering different services to the public/private companies is known as merchant bank. It includes both commercial and investment banks. The functions which are performed by the merchant bank when the company wants to raise funds from intermediaries as follows:-
1) Portfolio management
2) Loan sanction
3) Financing the project
4) Management of issue
5) Lease management
Archana
answered
Hie Rohith,
- Merchant bank is used in the case of private equity investment where unregistered securities of either privately or publicly held companies are also involved in it. Bank offering different services to the public/private companies is known as merchant bank. It includes both commercial and investment banks. The functions which are performed by the merchant bank when the company wants to raise funds from intermediaries as follows:-
1) Portfolio management
2) Loan sanction
3) Financing the project
4) Management of issue
5) Lease management
Pushkala Santhanam
answered
Merchant banker means any person engaged in the business of issue management by making arrangements regarding selling, buying or subscribing to securities or acting as manager/ consultant/ advisor or rendering corporate advisory services in relation to such issue management.
SEBI has advised that merchant bankers shall undertake only those activities which relate to securities market. These activities are -
1. Managing of public issue of securities;
2. Underwriting connected with the aforesaid public issue management business;
3. Managing/Advising on international offering s of debt/equity;
4. Private placement of securities;
5. Primary or satellite dealership of government securities;
6. Stock broking
Shubhangi Jain
answered
Merchant bank is used in the case of private equity investment where unregistered securities of either privately or publicly held companies are also involved in it. Bank offering different services to the public/private companies is known as merchant bank. It includes both commercial and investment banks.
The functions which are performed by the merchant bank when the company wants to raise funds from intermediaries as follows:
========================================================================
1) Portfolio management
2) Loan sanction
3) Financing the project
4) Management of issue
5) Lease management
ARJUN PRATAP SINGH
answered
Dear Friend,
as far as your query is concerned that What functions does the Merchant bank perform when a company wants to raise funds from intermediaries?
Let me informed that Merchant bank is used in the case of private equity investment where unregistered securities of either privately or publicly held companies are also involved in it. Bank offering different services to the public/private companies is known as merchant bank. It includes both commercial and investment banks. The functions which are performed by the merchant bank when the company wants to raise funds from intermediaries as follows:-
1) Portfolio management
2) Loan sanction
3) Financing the project
4) Management of issue
5) Lease management
Hope answer was helpful to you
Regards,
Arjun Pratap Singh
