Premium Essay

Merchant Banking

In: Business and Management

Submitted By mayura
Words 77349
Pages 310
BA 958 MERCHANT BANKING ANF FINANCIAL SERVICES Syllabus UNIT- 1 Introduction – An Overview of Indian Financial System – Merchant Banking in India –Recent Developments and Challenges ahead – Institutional structure – Functions of Merchant Banking – Legal and Regulatory Frameworks- Relevant Provisions of Companies Act- SERA-SEBI guidelines- FEMA etc. – Relation with stock Exchanges and OTCEI UNIT II - ISSUE MANAGEMENT Role of Merchant Banking in Appraisal of projects, Designing Capital Structures and Instruments – Issue Pricing Pricing- Preparation of prospectus selection of bankers, Advertising Consultants etc. – Role of Registrars –Underwriting Arrangements. Dealing with Bankers to the Issue, Underwriters, Registrars, and Brokers. –Offer for sale – Book- Building – Green Shoe Option –E –IPO Private Placement- Bought out Deals –Placement with FIs, MFs, FIIs, etc. offShore Issues. – Issue Marketing – Advertising Strategies-NRI Marketing- Post Issue Activities. UNIT III - OTHER FEE BASED MANAGEMENT Mergers and Acquisitions – Portfolio Management Services – Credit Syndication – Credit Rating – Mutual Funds – Business Valuation. UNIT IV - FUND BASED FINANCIAL SERVICES Leasing and Hire Purchasing – Basics of Leasing and Hire Purchasing – Financial Evaluation – Tax Implication. UNIT V - OTHER FUND BASED FINANCIAL SERVICES Consumer Credit – Credit Cards- Real Estate Financing – Bills Discounting – Recent Developments in Factoring and Forfeiting – Venture Capital. REFERENCES 1. M.Y.Khan, ‗Financial Services‘ – Tata McGraw –Hill, 3 rd Edition, 2005. 2. Machiraju, ‗ Indian Financial System ‗- Vikas Publishing House, 2 nd Edition, 2002. 3. J.C.Verma, ‗ A Manual of Merchant Banking ‗, Bharath Publishing House, New Delhi, 2001. 4. K.Sriram, ‗Hand Book of Leasing, Hire Purchase & Factoring‘, ICFAI, Hyderabad, 1992. 5. Economic Dailies, Relevant Publication of AMFS. 6. Bhalla....

Similar Documents

Premium Essay

Merchant Banking

...of INVESTMENT portfolios. Merchant banks also advise on (and INVEST own funds in) acquisitions, mergers, and takeovers. In the US, a merchant account provider is sometimes called a merchant bank. The Notification of the Ministry of Finance defines merchant banker as ³Any person who is engaged in the business of issue management either by making arrangements regarding selling, buying or subscribing to securities as manager-consultant, advisor or rendering corporate advisory services in relation to such issue management. In the words of Skully A Merchant Bank could be best defined as a financial institution conducting money market activities and lending, underwriting and financial advice, and INVESTMENTservices whose organization is characterized by a high proportion of professional staff able to able to approach problems in an innovative manner and to make and implement decisions rapidly. A merchant bank differs from a regular investment bank as it generally deals in the commercial banking requirements of international finance as well as stock underwriting and long-term corporate loans. A merchant bank is known as a wholesale bank and isn't used by the general public. Most merchant banks deal with large corporations as well as with other merchant banks, large financial institutions and, sometimes, various governments around the world. Merchant banks are not like ordinary bank where individuals can open up accounts by making deposits. At birth, Bangladesh inherited an......

Words: 16273 - Pages: 66

Premium Essay

Merchant Banking

...A PROJECT REPORT ON ANALYSIS OF MERCHANT BANKING IN INDIA SUBMITTED TO:Ms. Kavya Saini Submitted by:Kapil Baheti MBA 08/1808 2010 2012 A PROJECT REPORT ON ANALYSIS OF MERCHANT BANKING IN INDIA Department of commerce, kurukshetra University Kurukshetra ( Haryana) Under The Supervision Of :Mrs. Kavya Saini Submitted by:Kapil Baheti ] A PROJECT REPORT ON ³ANALYSIS OF MERCHANT BANKING IN INDIA´ Under The Supervision Of: - Submitted by:- Mrs. Kavya mam Kapil Baheti SUBMITTED TO:- International School of Infomatics & Management CONTENTS Sr.No. Page No. y y y y Chapter I Preface Guide Certificate Declaration Acknowledgement Introduction (Conceptual Framework) y y y y y Chapter II Chapter III Introduction Significance of the study Merchant Banking in India Focus of the Study Conceptualization literature Review Objective &Methodology y y y y Objective of the study Research design Sample size & Technique Data collection (Primary & Secondary) Chapter IV Data Presentation & Analysis Chapter V Implications & Conclusions Chapter VI Bibliography PREFACE The research studies are of a great help in enhancing the knowledge of a person. Practical knowledge is a suffix to theoretical knowledge. Classroom lecturers clarify the fundamental concepts of management. But classroom lectures must be correlated with the practical research situation. It is...

Words: 8518 - Pages: 35

Premium Essay

Merchant Banking in Bangladesh

...An article on Merchant Banking in Bangladesh: A Case Study on Prime Finance & Investment Ltd Abstract Prime Finance & Investment Limited has been running its merchant banking operations for about fourteen years. In this short period of time it has gained great momentum and expanding at a fascinating rate. However, the growth can be best evaluated by considering the financial factors as well as its operations. Capital market of Bangladesh is yet to play its potential role as a vehicle for financing long term investment. However, the hangover of an unpalatable historical past which saw a dramatic upsurge in the second half of 1996 only to be followed by a drastic and prolonged downswing has been successfully overcome. Discernible signs of renewed vitality have emerged. A number of actions have been considered by strategists to add depth to the market. Merchant banking, these days has been showing the path to achieve these goals. Although the concept is not too old in this country, its potential of meeting diverse challenges of capital market is high. This report emphasizes on the operations of Merchant Banking Division of Prime Finance & Investment Limited. It is aimed to achieve an overview on the operations of this division and measure how effective and efficient it has been in its working process. Keyword Prime Finance & Investment Limited, Merchant Banking, CDBL, DSE, SEC, TESA Merchant Banking Merchant banking is an emergent sector in the......

Words: 6320 - Pages: 26

Premium Essay

Paypale

...Paypal Has Company 1. What is the value proposition that PayPal offers consumers? How about merchants? The value offered to consumers is an electronic payment system for making online purchases that is free to use, without having to reveal their specific banking information to online sellers. PayPal is giving consumers a more convenient and trusted way to shop, as well as send or receive funds via instant transfer. PayPal offers merchants the ability to accept online payments without having to set up a merchant account, which is cost-effective especially for small businesses. It also gives them a level of fraud protection and security, quick access to funds, and the ability to do international transactions. 2. What are some of the risks of using PayPal when compared to credit cards and debit cards? Once the funds are withdrawn from the consumer bank account they cannot be recovered which could create a potential loss if they do not receive the good or service from the merchant. Credit cards offer more built-in fraud protection and a $50 maximum liability. “With PayPal, you may or may not receive you: money back, depending on whether PayPal can receive its money back, and a host of other conditions” (Laudon & Traver, 2009, p. 327). 3. What strategies would you recommend that PayPal pursue in order to maintain its growth over the next five years? PayPal needs to address their security issues if they wish to continue to grow. PayPal became known......

Words: 333 - Pages: 2

Premium Essay

Article on Merchant Banking in Bangladesh

...Personal Statement Introduction We know what we are, but not what we may be. Without a proper and complete shape of planning it is not possible to achieve goals. So, each and every one should maintain a personal statement of his/her dream. All fabulous wishes become nightmare if proper calculation and forecasting are not executed well. Life itself is the most wonderful fairy tale of all. We are the creatures of almighty Allah in this world. Every day we are experiencing new world. Now this is my personal statement which I am going to share. Here, this is Musrat Binta Kamal hailed from Rangunia, District of Chittagong, and citizen of Bangladesh. Education and Past From my childhood I was ambitious to hold a unique personality. Education has always been an important aspect of my life. While in high school I took challenging courses, such as advanced placement English and calculus, business studies, Computer etc. I wanted to maintain good GPA which allowed me to complete graduation. My SSC and HSC were completed in my native village. After then, admitted myself in the Bachelors of Business Administration, University of Chittagong .To keep with this advanced world it is needed to have strong background on technical, economic and communication sector. So, I chose “Marketing “as, my subject. After being graduated, MBA with Major in Marketing was completed gradually. I have always chosen challenging courses, and have good academic record. Although education plays a......

Words: 1141 - Pages: 5

Free Essay

Gifting Emotion Paper

...the counter payments (OTC) .................................................................................................... 6 2.1.3 Credit/Debit Card payments.............................................................................................................. 7 2.2 Escrow Payments .............................................................................................................................. 8 3. Payment Gateway features ................................................................................................................ 9 3.1 Customer portal ................................................................................................................................. 9 3.2 Merchant portal ................................................................................................................................. 9 4. Value proposition for Gifting Emotions ........................................................................................... 9 5. Integration ....................................................................................................................................... 10 5.1 Sandbox...

Words: 2343 - Pages: 10

Premium Essay

Family Dollar Executive Summary

...that target market, the competitors for the product, and how the product is different from competitive solutions in the market. A sample overview paragraph might look like this: is a that delivers . Unlike , provides . For example: PayPal is a web-based payment service that allows buyers and sellers to transfer funds instantaneously while protecting against fraud and identity theft. Unlike credit cards, PayPal allows any merchant to accept funds, and allows customers to pay for goods without disclosing sensitive banking or personal information. Lorem ipsum… Problem This section consists of either a short story or a handful of bullet points that concisely identifies the problems the product is designed to solve. Educate us – what is the current state of the world? Tell us – why is this a problem, and for whom is it a problem? Inspire us – what could a customer achieve with the product that currently isn’t possible? Use declarative sentences with simple words to communicate each point. Less is more. For example: Small web-based merchants are currently unable to sell their goods...

Words: 1367 - Pages: 6

Free Essay

Apple

...33 Innovation and disruption in U.S. merchant payments Innovation and disruption in U.S. merchant payments The U.S. merchant payments landscape is undergoing a period of rapid, technology-driven change. Mobile, online and social technologies are revolutionizing consumer access to information and sparking demand for new services that can support multichannel commerce, big data analytics, enhanced loyalty programs and targeted advertising. Consumers use the new tools to move dynamically between computer, mobile device and in-store experiences while shopping. For merchants, these cross-channel “journeys” create opportunities to integrate business-to-consumer (B2C) sales channels and to leverage generated data to understand consumer behavior. To capitalize on this opportunity, merchants need payments solutions that integrate adjacent business services and enable new functionalities that enhance loyalty programs and advertising performance. Robert Byrne Jason Hanson For payments and non-payments companies, new merchant services are attractive areas for growth. For payments companies, revenues from new merchant services could double today’s market in traditional merchant acquiring and transaction processing. For non-payments players, new services represent a major step toward closing the loop between investments in advertising and loyalty programs and consumers’ ultimate purchasing decisions. At the same time, cloud computing is lowering the barriers to......

Words: 3567 - Pages: 15

Free Essay

Hunger Games

...that it is a very poor area to live in considered the residents are struggling to put food on the table. It was extremely hard to find food in there, and many families lived in poverty. The part of District 12 that Katniss lives in is known as the Seam, which is where the coal-miners live and work. The Seam is located on the border of District 12 next to a forest. District 12 is enclosed by a high chain-link fence topped with barbwire. The electric fence is used a deterrent to predators that live in the woods. The merchant area in District 12 is a step up from the Seam. The mayor and his daughter, along with other families such as Peeta Mellark's, lived in the merchant area and are well-off for District 12. It was mentioned by Katniss that the merchants "lived above their businesses," suggesting that the merchants' homes doubled as their shops as well. The merchant section did exactly as its name implied—trading and buying goods. Katniss’s mother lived in the merchant area prior to marrying her husband. Another area in District 12 is the Hob, the districts black market. The Hob is where Katniss and Gale would go to trade the excess game. This area was the only place in the district where you buy banned items and was opened when most legal...

Words: 517 - Pages: 3

Free Essay

Uniform Commercial Code: Article 2 Sales Transactions over the Internet

...Uniform Commercial Code: Article 2 Sales Transactions over the Internet Introduction The Uniform Commercial Code (UCC) generally refers to the main set of regulations and laws that were primarily established to harmonize and standardize sales and commercial transactions in the United States. The primary reason for standardizing the state laws regarding the conduct of sale and transactions is that, often in today’s society, those transactions and sales tend to extend beyond the jurisdiction of a given state. For instance, a particular product may be manufactured in California, warehoused in Arizona, sold in Texas and delivered in Michigan. Consequently, the use of the UCC has not only ensured uniformity of the state laws regulating commercial transactions but has also allowed the states to achieve the necessary flexibility required to meet their local transaction demands (Benjamin and Jane,1998). The history of the UCC dates back to the 1940s when top American legal scholars began to draft a uniform law regulating commercial transactions that was intended to be adopted into the code of statutes of all of the states in America. Although the content of the UCC is generally the same in all the states that have adopted it, some states have however undertaken minimal structural adjustments to conform to the local state customs. The implementation of the UCC has enabled people from various states to freely make their commercial contracts without the different terms and......

Words: 2777 - Pages: 12

Free Essay

Blah

...At the court, Akbar asked Birbal, "Tell me Birbal! Will a man do anything for money?" Birbal replied, 'Yes'. The emperor ordered him to prove it. The next day Birbal came to the court along with a poor Brahmin who merely had a penny left with him. His family was starving. Birbal told the king that the Brahmin was ready to do anything for the sake of money. The king ordered the Brahmin to be inside the frozen pond all through the night without any attire if he needed money. The poor Brahmin had no choice. The whole night he was inside the pond, shivering. He returned to the durbar the next day to receive his reward. The king asked "Tell me Oh poor Brahmin! How could you withstand the extreme temperature all through the night?" The innocent Brahmin replied "I could see a faintly glowing light a kilometer away and I withstood with that ray of light." Akbar refused to pay the Brahmin his reward saying that he had got warmth from the light and withstood the cold and that was cheating. The poor Brahmin could not argue with him and so returned disappointed and bare-handed. Birbal tried to explain to the king but the king was in no mood to listen to him. Thereafter, Birbal stopped coming to the durbar and sent a messenger to the kingsaying that he would come to the court only after cooking his khichdi. As Birbal did not turn up even after 5 days, the king himself went to Birbal's house to see what he was doing. Birbal had lit the fire and kept the......

Words: 619 - Pages: 3

Premium Essay

Hi I Am A....Sjhjrnffkjmfmfkcmf..

...Case Background A large European Brewery (Company ‘A’ – based in Belgium) has recently made an acquisition in the United Kingdom of another smaller Brewery and its wholly owned subsidiary (Companies B and C collectively referred to as the ‘Consortium’). The European Brewery is now considering an IPO on a consolidated basis. They have appointed a Merchant Bank to underwrite the IPO and manage the process. Based on the information outlined herein and pursuant to an initial road-show the Merchant Bank has put out a Range of Offer Price between EURO 30 and EURO 38 per share. Based on your understanding of the facts contained herein as well as on secondary research through publicly available resources please critique and comment on the following: 1. Analyze the historical financials of Company A based on the information presented in the exhibits. The analysis should include a) Commentary on historical growth trends b) Revenue and profitability analysis c) Analysis of key financial ratios of the Company 2. The Range of Offer Price: Present a critique on the Range of Offer Price proposed by the Merchant Bankers. You will need to undertake a valuation using different methods to arrive at the Range. In undertaking this analysis you may want to consider the following: a) Scenarios concerning the successful integration of the target with the parent. b) Typical IPO pricing discounts. c) Appropriate consolidation and applicability of discount...

Words: 500 - Pages: 2

Premium Essay

Divergent

...persuading the Czar that you are not guilty. Your honor , I am asking for your leniency in sentencing me and plea that your sentence be merciful. Please take into account what I am going to say as many lives are going to be touched and affected by your decision today. As you know your Honor, I was charged with murdering and thievery. I admit that I had a tea with the merchant, then went to bed in adjoining rooms, and later on I left before dawn. The following day I was cross-questioned by two soldiers, as if I were a thief or a robber. Afterwards I learned that the merchant with whom I spent with last night has been found with his throat cut. The soldiers searched my things and found an evidence. The evidence might be strong, the blood-stained knife in my bag and having thousand of rubles. But I could hardly utter a word and and only stammered : "I don't know-- not mine, then the police ordered the soldiers to bind me and to put me in the cart. I suppose, that these evidence aren't enough to prove me guilty. It was unfair to charge me of murdering and thievery, without having a witness that I killed the merchant. I assure you my honor, that I did not did this tragic tragedy. I'm not a kind of man who goes around doing these, It's going to look as though I'm guilty. I'm asking you to place yourself in my hands, although I know that is a difficult thing to do. There is so much going on in my life that jail time would only further bring me down. Several people depend on......

Words: 352 - Pages: 2

Premium Essay

Retail Management Theories and Applications

...Table of Content Abstract 3 1. Introduction 3 2. M-Commerce 4 3. Groupon 4 3.1 Groupon’s Business Model 4 3.2 Groupon’s Target Audience 6 3.3 Groupon’s Market Positioning 7 3.4 Groupon’s Strategy 8 3.5 Groupon’s Retail Mix 9 3.5.1 Groupon Consumer Category (Groupon, 2013) 9 3.5.2 Groupon Merchant Tools (Groupon, 2013) 9 3.5.3 Groupon Resources (Groupon, 2013) 10 3.5.4 Groupon Socials Innovation (Groupon, 2013) 10 3.6 Groupon’s Direct Competitors 11 4. Suggestion for Groupon’s Competitive Advantage 12 5. Conclusion 13 Works Cited 14 List of Figure Figure 1 Atonomy of Groupon Deal 5 Figure 2 Comparision of Service Offered 6 Figure 3 Groupon Customer Satisfaction Rank 7 Figure 4 Comparison of Revenue 10 Abstract In this paper I am going to briefly explain on an exploding new and fast growing retail model called Groupon. Groupon is a type of Electronic Commerce; it is believed that e-commerce or E-Retailing will surpass brick and mortars format as the method of choice for consumer near future and it’s already proven in some country. Most of my finding is from electronic source which I have cited it accordingly. It is difficult to obtain reports and details about Malaysian Groupon so most of the reference in this paper are summarised from global reports, trends and researched on Groupon worldwide. 1. Introduction Electronic commerce or commonly known as E-Commerce; Is where the buying and selling of products or......

Words: 2781 - Pages: 12

Premium Essay

The End of Feudalism

... The effects of trade, the emergence of towns and the interjection of money into the economy truly revolutionized Western society economically, socially and politically. Many crusaders began to foster the economic relationships that would benefit themselves greatly. Merchants from Italy realized that there were profits to be made by taking their products northward. As they made their way north, they entered into a predominately rural society. They found that trade was hard to establish since this was a very rich agricultural society. The Italian merchants established temporary settlements called trade fairs. They tended to set up shop at a relatively accessible point, usually near a river. Another important deciding factor for location was security. They would want to set up the trade fair at a place that could be easily defended. Merchants could swap goods at these trade fairs using the barter system since there was still no monetary system in place. The trade fair would stay in one particular location for about one month and then pack up and move onto another location. After a few months of setting up from place to place they would head back to Italy to re-supply. Eventually, these merchants wore tired of moving their fairs from place to place and wanted to have a permanent settlement. From this need of permanent settlement...

Words: 637 - Pages: 3