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    Recent Developments & Challenges in India

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    Yashaswini
    Investment banks provide financial services like issuing securities, trading stocks, managing portfolios, and providing advisory services. With foreign investment banks entering India in the late 1990s, merchant banking started being called investment banking. Recent developments in the Indian investment banking industry include the establishment of regulatory bodies like SEBI, subsidiaries of nationalized banks providing specialized services, and new financial instruments emerging. Key challenges for investment banks include relationship management, deal structuring and execution, competition, developing new business opportunities, conducting research, needing size and skilled personnel, adopting new technologies, and meeting the growing need for professionalism as the market develops.

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    Recent Developments & Challenges in India

    Uploaded by

    Yashaswini
    50 views6 pages
    Investment banks provide financial services like issuing securities, trading stocks, managing portfolios, and providing advisory services. With foreign investment banks entering India in the late 1990s, merchant banking started being called investment banking. Recent developments in the Indian investment banking industry include the establishment of regulatory bodies like SEBI, subsidiaries of nationalized banks providing specialized services, and new financial instruments emerging. Key challenges for investment banks include relationship management, deal structuring and execution, competition, developing new business opportunities, conducting research, needing size and skilled personnel, adopting new technologies, and meeting the growing need for professionalism as the market develops.

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    Investment banks provide financial services like issuing securities, trading stocks, managing portfolios, and providing advisory services. With foreign investment banks entering India in the late 1990s, merchant banking started being called investment banking. Recent developments in the Indian investment banking industry include the establishment of regulatory bodies like SEBI, subsidiaries of nationalized banks providing specialized services, and new financial instruments emerging. Key challenges for investment banks include relationship management, deal structuring and execution, competition, developing new business opportunities, conducting research, needing size and skilled personnel, adopting new technologies, and meeting the growing need for professionalism as the market develops.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    50 views6 pages

    Recent Developments & Challenges in India

    Uploaded by

    Yashaswini
    Investment banks provide financial services like issuing securities, trading stocks, managing portfolios, and providing advisory services. With foreign investment banks entering India in the late 1990s, merchant banking started being called investment banking. Recent developments in the Indian investment banking industry include the establishment of regulatory bodies like SEBI, subsidiaries of nationalized banks providing specialized services, and new financial instruments emerging. Key challenges for investment banks include relationship management, deal structuring and execution, competition, developing new business opportunities, conducting research, needing size and skilled personnel, adopting new technologies, and meeting the growing need for professionalism as the market develops.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 6

    MERCHANT BANKING

    Recent Developments and Challenges in India


    ❑ Investment banks are financial intermediaries in the
    INVESTMENT business of providing investment and financial advisory
    services to companies, governments and institutional
    BANKING investors. Investment banks issue securities on behalf
    of both public as well as private companies, trade
    securities in the primary and secondary markets on
    behalf of individual and institutional investors, manage
    portfolios for high net-worth clients and corporates, and
    provide financial advisory services to corporates,
    private equity groups, public entities, non-profit clients
    and institutional investors.

    ❑ With the advent of foreign-investment banks in India


    in the late 1990s, merchant banking started being
    referred as ‘investment banking.’ Merchant-banking
    activity comes under the purview of the SEBI and
    regulations have been framed to regulate the
    activities of merchant bankers.

    2
    RECENT DEVELOPMENTS

    Setting up of Securities and Exchange Establishment of SUA


    Subsidiaries Board of India (SEBI)

    In order to meet the growing demand To develop and regulate securities In order to educate and protect the
    for broad-based financial services market, investor protection and to interest of investors, to provide
    formulate rules and guidelines for
    from the corporate sector more regulation of securities market, the information about new issues of
    effectively, the merchant banking Central Government constituted capital market, to evolve a code of
    divisions of the nationalised Banks h Securities and Exchange Board of India conduct for underwriters and to
    on April 4, 1988.
    started forming independent render legal and other services to
    subsidiaries. These subsidiaries offer members and public, the Stockbroker
    more specialised services with Underwriters Association (SUA) was
    professional expertise and skills. established in 1984. SUA works in
    co-ordination with merchant bankers
    and takes steps for promoting the
    activities of capital market.

    3
    RECENT DEVELOPMENTS
    Re-organisation of Discount and Finance Stock-Holding
    Private Firms House of India (DFHI) Corporation of India
    Private merchant bankers have also DFHI was incorporated as a Ltd. (SHC)
    started reorganising their activities company under the Companies Act, SHC was set up in 1986 by the All
    e.g., J.M. Financial & Investment 1956 with an authorised and paid up India Financial Institutions to take
    Consultancy Ltd., 20th Century capital of Rs. 100 crores. care of safe custody, delivery of
    Finance Corporation Lid., LKP DFHI aims at providing liquidity in shares and collection of sale
    Merchant Financing Ltd. etc. money market as it deals mainly in proceeds of the securities. The
    commercial bills. setting up of SHC is bound to
    affect the capital market in future.

    4
    RECENT DEVELOPMENTS
    Credit Rating Information Foreign Investment New Financial
    Services of India Ltd.
    (CRISIL) Instruments
    Earlier there were various restrictions With the development of the capital
     CRISIL has been set up in 1987 to
    on foreign investment but with the market in the country and
    provide help to investors, merchant
    relaxation in norms, there were introduction of new financial
    bankers, underwriters, brokers,
    foreign investments in the country. instruments it increased the role
    banks and financial institutions etc.
    The assistance and guidance is and importance of the investment
    CRISIL rates various types of
    provided by the merchant banks. banks
    instruments such as debt, equity and
    fixed return securities offered to the
    public. It helps the investors in taking
    investment decisions.

    5
    EMERGING CHALLENGES

    ⮚ Relationship Mangement
    ⮚ Structuring Deals
    ⮚ Deal Execution
    ⮚ Competition
    ⮚ New Business Opportunities
    ⮚ Research
    ⮚ Size is Important
    ⮚ Skilled Personnel
    ⮚ Technology
    ⮚ Growing need for Professionalism
    ⮚ Development of the Market
    6

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