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What functions does the Merchant bank perform when a company wants to raise funds from intermediaries?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 rohith asked over 2 years ago

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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6 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

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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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

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

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Picsjoin 2017224123730582 Archana answered over 2 years ago

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

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Pushkala Santhanam answered over 2 years ago

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

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Open uri20170510 32134 1uwcnoc?1494421631 Shubhangi Jain answered over 2 years ago

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

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Open uri20170510 32134 s5bvk0?1494421637 ARJUN PRATAP SINGH answered over 2 years ago

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

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