Blackbook Project on Merchant Banking 1 (1)

7/25/2019 Blackbook Project on Merchant Banking 1 (1)

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MERCHANT BANKING

Bachelor of Commerce

Banking & Insurance

emes!er "

#Aca$emic %ear '()(*'())+

u,mi!!e$ B-

HEBT.//AH KA0A1IA

ea! No

2AI HIN1 C3//EGE

4A5 Roa$6 Churchga!e6 Mum,ai*7(( ('(

)80 a ge


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MERCHANT BANKING

BACHE/3R 39 C3MMERCE

BANKING & IN.RANCE

EMETER :

.BMITTE1 B%

HEBT.//AH KA0A1IA

EAT N3;

2AI HIN1 C3//EGE

4A5 R3A16 CH.RCHGATE6 M.MBAI*7(( ('(

'80 a ge


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1EC/ARATI3N

I6 HEBT.//AH KA0A1IA6 s!u$en! of B;Com; Banking & Insuranceemes!er : #'()(*))+ here,- $eclare !ha! I ha"e com


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MERCHANT BANKING


BANKING & IN.RANCE

EMETER :

.BMITTE1

IN 0ARTIA/ 9./9I//MENT 39 THE

[email protected] 93R THE AAR1 39 1EGREE 39


BANKING & IN.RANCE

B%

HEBT.//AH KA0A1IA

EAT N3

2AI HIN1 C3//EGE

4A5 Roa$6 Churchga!e6 Mum,ai*7(( ('(;

780 a ge


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2AI HIN1 C3//EGE

4A5 Roa$6 Churchga!e6 Mum,ai*7(( ('(;

CERTI9ICATE

This is !o cer!if- !ha! Mr; HEBT.//AH KA0A1IA of B;Com;Banking & Insurance emes!er : #'()(*))+ has successfull- com


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ACKN3/E1GEMENT

I o>e a grea! man- !hanks !o a grea! man- ell >ishers;

80 a ge


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IN1EF

r; ;

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EFEC.TI:E .MMAR%INTR31.CTI3NHIT3R% 39 MERCHANT ANKINGTRA1ATI3NA/ MERCHANT ANKINGM31ERN MERCHANT ANKINGMAIN 3B2ECTI:E 39 MERCHANT BANKERC30E 93R GR3TH 39 MERCHANTBANKING IN IN1IAMERCHANT BANKING IN IN1IA1E:E/30MENT IN MERCHANT BANKINGETAB/IHMENT IN IN1IAR3/E 39 MERCHANT [email protected] 93R ETTING .0 AMERCHANT BANKING 3.T9ITG.I1E/INE 39 EBIIN:ETMENT BANK :J MERCHANT BANKMERCHANT BANK :J C3MMERCIA/ BANK9.NCTI3N 39 MERCHANT BANKER0R3B/EM 39 MERCHANT BANKINGCAE T.1IEANA/%I AN1 INTER0RETATI3N

C3NC/.I3NBIB/I3GRA0H%ANNEF.RE @.ETI3NAIRE

0AGENo;

)'?D

)'

)7)

)')'?'?

'7?(?'?

777

80 a ge


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EFEC.TI:E .MMAR%

Merchan! Banking is an imhich >ere in nee$ of non*fun$ ,ase$ income soas !o im

of !hese ues!ions an$ also !o sugges! reme$ial measures >here"er


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INTR31.CTI3N

3riginal 1efini!ion A Merchan! Bank is a Bri!ish !erm for a ,ank

a$"ice on acuisi!ions6 mergers6 foreign echange6 un$er>ri!ing ne> issues6 an$


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HIT3R% 39 MERCHANT BANKING

In la!e )!h an$ earl- )!h cen!ur- Euroas

merchan! a$"en!urers; ui!h official righ!s !o lucra!i"e

!ra$ing ac!i"i!ies in In$ia; This comas !he forerunner in $e"elon =e>el of !he English Emas s!ar!e$ ,- >ha! >e

>oul$ !o$a- call merchan! ,ankers6 ,ecause of !he firms in"ol"emen! in financing6

nego!ia!ing6 an$ imha! are no> In$onesia !he 9rench an$ 0or!uguese

ac!e$ similarl- in !heir res

merchan!s; As !he /om,ar$- merchan!s an$ ,ankers gre> in s!a!ure on !he ,ack of

!he /om,ar$


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The 2e>s coul$ no! hol$ lan$ in I!al-6 so !he- en!ere$ !he grea! !ra$ing ish ne>comers6 on !he

o!her han$6 coul$ len$ !o farmers agains! croha!

>oul$ ha"e ,een consi$ere$ usurious ra!es ,- !he Church6 ,u! $i$ no! ,in$ !he

2e>s; In !his >a- !he- coul$ secure !he grain sale righ!s agains! !he e"en!ual

har"es!; The- !hen ,egan !o a$"ance agains! !he $eli"er- of grain shi


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TRA1ATI3NA/ MERCHANT BANKING

Merchan! Banking6 as !he !erm has e"ol"e$ in Euroas $irec!e$ !o>ar$s a commo$i!- !ra$erJcargo o>ner >ho >as in"ol"e$ in !he

,u-ing6 selling6 an$ shi


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M31ERN MERCHANT BANKING

1uring !he '(!h cen!ur-6 ho>e"er6 Euro


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0rofessional merchan! ,ankers mus! ha"e

)+ An un$ers!an$ing of !he


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MAIN 3B2ECTI:E 39 MERCHANT BANKER

Merchan! ,ankers ren$er !heir shich are

- To carr- on !he ,usiness of merchan! ,anking6 assis! in !he caful >a-s in

comi!h !he rele"an! la>s of In$ia;

- The- >ill in"es! in ,u-ing an$ selling of !ransfers6 h-i!h $is


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C30E 93R GR3TH 39 MERCHANT BANKING IN IN1IA

As ell In$ia ca


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Changing !he len$ing


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THE 9ACT3R 3N HICH GR3TH 39 MERCHANT BANKING

1E0EN1

0lanning an$ in$us!rial


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MERCHANT BANKING IN IN1IA

In In$ia Merchan! Banking ac!i"i!ies s!ar!e$ from !he -ear )6 follo>ing !he

foo!s!e


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Grin$la-s Banks )

Ci!i ,anks )(

BI )?

ICICI )7

Merchan! ,anking in In$ia * an o"er"ie>

Com


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1E:E/30MENT IN MERCHANT BANKING ETAB/IHMENT IN IN1IA

e!!ing u< of ,anks u,si$iaries

In or$er !o mee! !he gro>ing $eman$ for ,roa$*,ase$ finacial ser"ices from !hecori!h


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1iscoun! & 9inance House of In$ia#19HI+

19HI >as incor


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R3/E 39 MERCHANT BANKER

The role of merchan! ,anker is $-namic in !he >ake of $i"erse na!ure of

merchan! ,anking ser"ices; Merchan! ,anker5s $-namism lies in areas so as !o eui< himself >i!h !hekno>le$ge an$ !echniues !o $eal >i!h emerging ne>


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[email protected] 93R ETTING .0 A MERCHANT BANKING 3.T9IT

); 9orma!ion of !he Business 3rganiPa!ion*

EBI ac!6 )' $oes no! All !he ,asic !es!s reuire$ !o fin$ ou! >he!her !he ,usiness !o ,e un$er!aken is"ia,le or no! are also a


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Ca!egor- I6 !ha! is

#i+ To carr- on an- ac!i"i!- of !he issue managemen!6 >hich >ill in!er*alia consis!

of ri!er6

ri!er6 a$"iser6 consul!an! !o an issue

Ca!egor- I:6 !ha! is !o ac! onl- as a$"iser or consul!an! !o an issue;

To carr- on !he ac!i"i!- as un$er>ri!er or


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- The a

- The a


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- The a or ,usiness managemen!

- Gran! of cer!ifica!e !o !he a


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G.I1E/INE 39 EBI

Af!er !he o,liga!ions of !he CCI6 !he as occu


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The Com


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IN:ETMENT BANK :J MERCHANT BANK

IN:ETMENT BANKING

Bo!h fee*,ase$ an$ fun$*,ase$;Commi! !heir o>n fun$s;

MERCHANT BANKING

0urel- fee*,ase$;

Imi!h 1e,! & 1e,! rela!e$ finance;Asse! orien!e$;

Generall- a"oi$ risks;

MERCHANT BANKING

1eals >i!h Eui!- & Eui!- rela!e$ finance;Managemen! orien!e$;

illing !o acce

?( 8 0 a g e


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9.NCTI3N 39 MERCHANT BANKER

Consul!ing a$"ice on going i!h a com


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o Cor

o Cre$i! -n$ica!ion

Merchan! ,ankers arrange !o !ie u< loans for !heir clien!s; This !akes ings can ,e $efine$; Then !he merchan! ,anker


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Af!er !aking ac!ion as i!h comri!er !ha! in !he e"en! of un$ersu,scriri!!en >oul$ ,e su,scri,e$ ,- him;

BanksJMerchan! ,anking su,si$iaries canno! un$er>ri!e more !han )D of an-

issue;

o Bankers !o !he Issue

The merchan! ,anker can au!oma!icall- ,ecome !he ,anker !o !he issue in !he

follo>ing cases

The ,ank is a ,roker !o !he comi!h minimum risk;

?? 8 0 a g e


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o A$"isor- er"ices Rela!ing To Mergers an$ Takeo"ers

A merger is $efine$ as a com,ina!ion of !>o or more comhich is !he

>ill s!ar! for a merger

>ill selec! a non*rela!e$ com


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o :en!ure Cahen !he shares are lis!e$;

o /easing

Is !here ano!her lucra!i"e area of financing >here merchan! ,ankers are !urningL

/easing is a "ia,le source of financing >hile acuiring ca

!he


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o Arranging 3ffshore 9inance

The merchan! ,ankers hel< !heir clien!s in !he follo>ing areas in"ol"ing foreigncurrenc-;

#a+ /ong !erm foreign currenc- loans #,+ 2oin! :en!ures a,roa$

#c+ 9inancing es

Assessmen! of cahere !he reha,ili!a!ion


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0R3B/EM 39 MERCHANT BANKING

Res!ric!ion of merchan! ,anking ac!i"i!ies

EBI gui$elines ha"e au!horiPe$ merchan! ,ankers !o un$er!ake issue

rela!e$ ac!i"i!ies an$ ma$e !hem res!ric! !heir ac!i"i!ies or !hink of

seor!h of Rs;) crore

EBI gui$elines s!ior!h of Rs;) crore for

au!horiPa!ion of merchan! ,ankers;

Non co*o


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Merchan! Banker5s Commission

Maimum * (;D

0ro=ec! a


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CAE T.1IE

BI Merchan! Banking Grou< is s!rongl- i!hin In$ia6 >here i! also o>ns ma=ori!- s!akes in se"en associa!e ,anks;

!a!e Bank of In$ia has more !han D( offices in nearl- ?D o!her coun!ries6 inclu$ing

mul!ins a,ou! ( of

!a!e Bank of In$ia;

BI ,eing an In$ian en!i!- has no In$ia e


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3.R 0R31.CT AN1 ER:ICE

Arranging E!ernal Commercial Borro>ings #ECB+

Arranging an$ orl$*class in"es!men! ,anking ser"ices;

3ur :ision * To ,e !he ,es! In$ia ,ase$ In"es!men! Bank;

7( 8 0 a g e


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BI Grou


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0romo!ers5 hare * 0erformance*

ER:ICE5*

0ro=ec! A$"isor- & !ruc!ure$ 9inance

BICA0 has ,uil! a formi$a,le


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Ca

The M & A


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ANA/%I AN1 INTER0RETATI3N

@ ) 1o -ou !ake an- financial ser"ices from ,ankL

r;No;

)

'

Take 9inancialer"ice

%es

No

To!al

Nos;

?

77

(

0ercen!age

7D

DD

GRA0H

Take 9inancial er"ice

7D

) %es

' No

DD

In!er


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@ ' 1o -ou kno> a,ou! Merchan! BankingL

r;

No;

)

'

Kno> a,ou!

Merchan!

%es

No

To!al

Nos;

?'

7

(

0ercen!age

7(

(

Kno> a,ou! Me chan!

' o6 (

D(

7(

?(

'(

)(

) e 6 7(

)e

'o

In!er


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@ ? Are -ou sa!isfie$ >i!h !he ser"ices


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@7 Are -ou sa!isfie$ >i!h ser"ices offere$ ,- ,anksL

r; no

)

'

?

7

D

Bank

ICICI

BI

0NB

B3I

3!her

0ercen!age

'(

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'(

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In!er


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@ D ha! is !he


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@ ha! is !he


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@ ha! !-


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@ Are -ou sa!isfie$ ,- ecuri!- margin of ,ankL

r;No; a!isfac!ion ,- ecuri!-

Margin

);

';

%es

No

To!al

7

)

(

(

'(

)((

Nos; 0ercen!age

(

(

D(

7(%es

(

'(

)(

(

%es

In!er


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@ Are -ou sa!isfie$ >i!h !imel- ser"ices


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@)( ill i! $iffer from in"es!men! ,anksL

r;

No;

)

'

1ifference

%es

No

To!al

Nos;

(

'(

(

0ercen!age

D

'D

)((

(

D(

7(

(

'(

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(

%es No

%esNo

In!er


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C3NC/.I3N

The merchan! ,anker i!5s going !o ge! emerge$ in !he In$ian

econom-; Hence6 Merchan! Banking can ,e consi$ere$ as essen!ial financial ,o$-in In$ian financial s-s!em;

Marke! $e"eloing a>areness an$

in!eres! in!o an essen!ial6 !o remo"e !he !ra$ing mal


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BIB/I3GRA0H%

0rimar- ources

BI CA0ITA/ MARKET /IMITE1* Chief -n$ica!e$ /oan Manager*Mr; Ami! Banso$

econ$ar- ources

- Books

); Merchan! Banking in In$ia* K C Gu

'; Merchan! Banking In In$ia E"olu!ion An$ Emergence6 9unc!ions6 Rules An$ Regula!ions6 E>>;google;comJne>s'; >>>;ans>er;com

?; >>>;emissar-ca>>;>iki>>;se,i;go";in

; h!!>;asiala>;comJAr!icleJ)(JMerchan!*Banking;h!ml

; h!!>>;icicisecuri!ies;com; h!!>>;s,ica>;,o,ca>;


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@ues!ionnaire

Res


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D; ha! is !he

Blackbook Project on Merchant Banking 1 (1)

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Transcript of Blackbook Project on Merchant Banking 1 (1)