What is the role of merchant banker in appraisal of project in India?
Merchant banker helps to prepare project report, cost of the project, arranging finance, project appraisal on the basis of location, technical, marketing. Loan syndication: It is otherwise known as credit syndication. Credit or loan syndication means arranging loans for borrower who is likely to be an large company.
What is the role of merchant bankers in project appraisal?
Merchant bankers give project counseling essential in project appraisal. This helps in working towards the preparation of the project. Merchant bankers also guide in acquiring finance essential for project appraisal.
What is the role of a merchant banker in India?
Merchant bankers help arrange funds for large corporate borrowers by syndicating loans from multiple lenders. They act as an intermediary between the borrowing company and the lending institutions.
Which of the following is a function of merchant banker?
Some of the most common merchant banking services include, fundraising, financial advisory, lending, underwriting, corporate portfolio management, international trade advisory, mergers and acquisitions, and asset sale and management advisory.
What is the most important function of merchant banks?
Merchant banks are financial institutions that provide a wide range of services to businesses and individuals. Their most important function is to provide financial assistance to companies in the form of loans and investments, especially in the medium to long term.
What is the role of merchant banker in project appraisal and designing the capital structure?
In order to raise fund or adding more to the share-capital, the merchant banker helps the issuer company to evaluate and assess the capital needs of the company and therefore it lays down the structure of financial instruments through which the organization can pool funds from different sources.
What is merchant banker valuation?
Under FEMA Regulation, Valuation can be done by a SEBI registered merchant banker or even by a Chartered Accountant or Cost Accountant. It is the process of accessing the Actual/ Fair market price of the Shares/ Debentures or the Capital Instrument. As per RBI guidelines, fair valuation shall be duly certified.
What are the responsibilities of merchant bankers as per SEBI?
A merchant banker shall render at all times high standards of service, exercise due diligence, ensure proper care and exercise independent professional judgement. He shall wherever necessary, disclose to the clients, possible sources of conflict of duties and interests, while providing unbiased services.
What is the average salary of merchant banker in India?
Average annual salary in Indbank Merchant Banking Services is INR 6.8 lakhs . Salary estimates are based on 64 Indbank Merchant Banking Services latest salaries received from various employees of Indbank Merchant Banking Services.
Which are the merchant bankers in India?
- A.K.Capital Services Limited.
- Ambit Private Limited.
- Anand Rathi Advisors Limited.
- Ashika Capital Limited.
- Avendus Capital Private Limited.
- Axis Capital Limited.
- BCB Brokerage Private Limited.
- BNP Paribas.
What are the general obligations and responsibilities of merchant bankers?
A merchant banker has to exercise due care and diligence and maintain high standards of integrity in the conduct of its business. Further, it is the Merchant Banker's responsibility to ensure that investors receive accurate and timely information.
What are the functions and role of merchant bankers in issue management?
Merchant banker is 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 services in relation to such issue management in merchant banking.
Who is a merchant banker and what are the functions performed by the merchant banker evaluate the future of merchant banking in India?
In the Indian financial system, merchant bankers are crucial since they carry out a variety of tasks that help to expedite capital market transactions and offer business advising services. Regulatory compliance, capital market services, business advisory services, and project finance are all part of their duties.
Who can be a merchant banker?
For a Career in Merchant Banking, prerequisites are that you need to really work hard and you need to really work smart also. You need to be either a CA, CS or MBA to get into this field. In fact, only CS doesn't work, you need to be either an MBA or Chartered Accountant to really do well in this field.
How many merchant banks are there in India?
In India, merchant Banking firms were first introduced in the year 1967 by the Grindlays bank. Currently, there are more than 200 SEBI registered merchant banks in India.
What is the difference between a merchant bank and a private equity bank?
Private equity is a type of investing that involves buying ownership in private companies. Merchant banks also often offer other services such as advising on mergers and acquisitions and helping companies to raise capital from other sources.
What are the challenges faced by merchant bankers in India?
Merchant Bankers are authorized to undertake only issue related activities, which restrict their scope of activities. Issuing companies do not adhere to the schedule in allotment and refund of application money thereby creating trouble for the image of these bankers at the investors.
What are the requirements for project appraisal?
The major aspects to be considered during the appraisal of the project are: 1) Technical 2) Institutional 3) Organizational 4) Managerial 5) Social 6) Commercial 7) Financial 8) Economic 9) Sustainability Let us now discuss each of these criterions of project appraisal.
What is the classification of merchant bankers by SEBI?
Underwriters and Portfolio managers
Underwriters include those merchant bankers in categories I,II and III, Stock brokers and mutual funds. Portfolio Mangers include Category I and II merchant bankers as well as those who are registered separately under the Portfolio Managers Regulations.
What is an example of a merchant banker?
Unlike retail or commercial banks, merchant banks do not typically provide financial services to the general public. Unlike investment banks, they focus on private companies not public companies. Examples of large merchant banks include JPMorgan Chase, Goldman Sachs, and Citigroup.
What are the four categories of merchant bankers?
| Category | Minimum Net Worth Requirement |
|---|---|
| Category I | Capital net worth of Rs. 5 Crores |
| Category II | Capital net worth of Rs. 50 Lakhs |
| Category III | Capital net worth of Rs. 20 Lakhs |
| Category IV | Nil capital |
What are the qualities of good merchant banker?
Qualities of the Merchant Banker
Merchant banker should have ability of analysis and evaluation of different projects. Merchant banker should have high level of integrity and must maintain professional standards in safeguarding interests of investors.
What are the rules for merchant banking in India?
The applicant must be a company incorporated under the Companies Act, 1956 or 2013. The applicant should have a minimum net worth of INR 5 crores. The applicant must have at least one full-time director who possesses adequate experience and expertise in merchant banking activities.
What are the challenges of merchant banker?
Risks of Merchant Banking
Changes in economic conditions, interest rates, and currency values can impact the value of investments and financial instruments. 2. Credit Risks: Providing loans and underwriting securities involve credit risks.
What is Category 1 merchant banker in India?
Merchant bankers were divided into the following four groups by the Securities Exchange Board of India: 1. Advisors, issue managers, consultants, portfolio managers, and underwriters fall under category I.
