4
 An Investment Banker is total solutions provider as far as an y corporate, desirous of mobilising capital, is concerned. The services range from investment research to investor service on the on e side and from preparation of offer documents to legal compliances and post issue monitoring on the other. There exists a long lasting relationship between the Issuer Company and the Investment Banker. A "Merchant Banker" could be defined as "An organisation that acts a s an intermediary between the issuers and the ultimate purchasers of securities in the primary security market" Merchant Banker has been defined under the Securit ies & Exchange Board of India (Merchant Bankers) Rules , 1992 as "any 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 service in relation to such issue management". Merchant Banking, as a commercial activity, took shape in I ndia through the management of Public Issues of capital and L oan Syndication. It was originated in 1969 with the setting up of the Merchant Banking Division by ANZ Grindlays Bank. The main service offered at that time to the corporate enterprises by the merchant banks included the management of public is sues and some aspects of financial consultancy. The early and mid-seventies witnessed a boom i n the growth of merchant banking organisat ions in the country with various commercial banks, financial institutions, broker' s firms entering into the field of merchant banking.

An Investment Banker is Total Solutions Provider as Far as Any Corporate

Embed Size (px)

Citation preview

8/12/2019 An Investment Banker is Total Solutions Provider as Far as Any Corporate

http://slidepdf.com/reader/full/an-investment-banker-is-total-solutions-provider-as-far-as-any-corporate 1/4

 

An Investment Banker is total solutions provider as far as any corporate, desirous of mobilising

capital, is concerned. The services range from investment research to investor service on the one

side and from preparation of offer documents to legal compliances and post issue monitoring on

the other. There exists a long lasting relationship between the Issuer Company and the

Investment Banker. A "Merchant Banker" could be defined as "An organisation that acts as

an intermediary between the issuers and the ultimate purchasers of securities in the primary

security market"

Merchant Banker has been defined under the Securities & Exchange Board of India (Merchant

Bankers) Rules, 1992 as "any 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 service in relation to such issue

management".

Merchant Banking, as a commercial activity, took shape in India through the management of

Public Issues of capital and Loan Syndication. It was originated in 1969 with the setting up of

the Merchant Banking Division by ANZ Grindlays Bank. The main service offered at that time

to the corporate enterprises by the merchant banks included the management of public issues

and some aspects of financial consultancy. The early and mid-seventies witnessed a boom in

the growth of merchant banking organisations in the country with various commercial banks,

financial institutions, broker's firms entering into the field of merchant banking.

8/12/2019 An Investment Banker is Total Solutions Provider as Far as Any Corporate

http://slidepdf.com/reader/full/an-investment-banker-is-total-solutions-provider-as-far-as-any-corporate 2/4

 

Reform measures were initiated in the capital market from 1992, starting with the conferring ofstatutory powers on the Securities and Exchange Board of India (SEBI) and the repeal of Capital

Issues Control Act and the abolition of the office of the Controller of Capital Issues. These have

 brought about significant improvement in the functional and regulatory efficiency of the market,

enabling the Merchant Bankers shoulder greater legal and moral responsibility towards

the investing public.

KARVY AS AN INVESTMENT BANKER

Karvy is well networked with 200 full-fledged branches and 350 Investor Service Centers with a

workforce of over 3500 personnel drawn from various disciplines.

Karvy Investor Services Limited, a SEBI registered Merchant Banker is a 100% subsidiary of

Karvy Consultants Limited and is among the top 10 merchant Bankers in India today. The parent

Company i.e. Karvy Consultants Limited was founded by a group of professionals in 1982 andtoday it has evolved as integrated financial services company of repute, offering various financialservices to suit every requirement/need of our customers. By virtue of its access to millions of

Indian Shareholders, in addition to companies, banks and financial institutions, Karvy has in the

 process built up a positive reputation with regulatory authorities and other government agencies.Our emphasis on the quality of the services, we offer, has been instrumental in helping us to

attain the leadership in the financial services sector.

8/12/2019 An Investment Banker is Total Solutions Provider as Far as Any Corporate

http://slidepdf.com/reader/full/an-investment-banker-is-total-solutions-provider-as-far-as-any-corporate 3/4

8/12/2019 An Investment Banker is Total Solutions Provider as Far as Any Corporate

http://slidepdf.com/reader/full/an-investment-banker-is-total-solutions-provider-as-far-as-any-corporate 4/4

 

 What is Investment Banking?

Investment banking can be described as domain

of banking which usually focuses and also assists businesses to obtain capital. In reality, it’s a lot

more than aiding organizations receive funds, but additionally providing them with suggestions

with regard to a lot of dealings that firms could be part of.

In the beginning, financial institutions seemed to embark on commercial banking. This is

certainly wherein an establishment gathers deposits from clients, after which moves on to offer

these individuals direct loans. However in the present day, it’s been largely swapped out by

investment banking where by an organization may crank out money in 2 different methods. Theforemost is via the institutions pulling funds within the capital markets, typically by trading stock

in their own corporation, and the 2nd one is by searching for business capital or equity finance.

This is achieved in return for a share in the enterprise.

It’s well worth remembering that these kinds of financial agencies offers investment brokers tips

as well as consultancy services, this includes guidance on mergers, purchases, and so on. Some

may in addition monitor the industry in order to aid their customers about how advisable to

maintain their public assets, or perhaps the best time to carry out public offerings. Nevertheless,

the line concerning investment banking  in addition to other types of banking is fairly thin,resulting from deregulation allowing financial institutions to create a lot more market sectors.

That way, a number of the solutions which were especially provided by investment

banking organizations can be positively proposed by huge banks.

In the field of money marketplace, specialists in investments are now being preferred because of

their knowledge. Such professionals tend to be engaged in continuous moving around and

dealing for very long hectic hours. However in fact, it’s a rewarding profession which usually

helps to ensure that investment banking gurus get good monetary bonuses a matter of reality,

 because of the latest financial meltdown in most parts of the planet, investment banking consultants are increasingly being recognized than any other time.