Merchant Banking
Content
MERCHANT BANKING
DEFINITION: ³ Merchant Bank is an organization that underwrites securities for corporation , advises such clients on mergers and is involved in the ownership of commercial ventures´.
³These organizations are banks which are not merchants, merchants which are not banks , sometimes houses which are neither merchants nor banks´ SEBI ³ A merchant banker is any person who is engaged in the business of issue management either by making arrangement regarding selling, buying or subscribing to securities acting as manager, consultant , adviser, or rendering corporate advisory services in relation to such issue management.´
Functions : Corporate Counseling Project Counseling Pre investment studies Capital restructuring. Credit Syndication and Project Financing Issue Management and Underwriting.
Portfolio Management Working Capital Finance Acceptance Credit and Bill Discounting Mergers, Amalgamations and Takeovers Venture Capital Lease Financing Foreign Currency Finance
Fixed Deposit Broking Mutual Funds Relief to Sick Industries Project Appraisal
Code of Conduct for Merchant bankers
Integrity Quality Service Fair Practice Responsible statement Best advice Secrecy Information Prospectus
Allotment True Market Compliance
Regulatory Framework
Submission of offer document Dispatch of Issue material Underwriting Compliance obligations Pre issue and Post issue obligations ----
Pre Issue Obligations
1. Obligations 2. Documents to be submitted--------- MOU, Due Diligence Certificate, Certificate signed by professional, Undertaking, List of Promoters¶ Group. 3. Appointment of Intermediate. 4. Underwriting
5. Offer Document to be made public 6. Dispatch of Issue Material. 7. No complaints Certificate. 8. Mandatory collection centers. 9. Authorized collection centers. 10. Advertisement for rights post issue. 11. Appointment of Compliance officer
12. Abridged Prospectus. 13. Agreements with Depositories
Post Issue Obligations
1. 2. 3. 4. 5. 6. 7. 8. Post issue monitoring reports. Redressal of investor grievances. Coordination with intermediaries. Stock Invest Underwriters Banker to issue Post issue advertisements Basis of allotment
9. Reservation of small individual applicants 10. Other responsibilities 11. Certificate regarding realization of stock invests.
DEFINITION: ³ Merchant Bank is an organization that underwrites securities for corporation , advises such clients on mergers and is involved in the ownership of commercial ventures´.
³These organizations are banks which are not merchants, merchants which are not banks , sometimes houses which are neither merchants nor banks´ SEBI ³ A merchant banker is any person who is engaged in the business of issue management either by making arrangement regarding selling, buying or subscribing to securities acting as manager, consultant , adviser, or rendering corporate advisory services in relation to such issue management.´
Functions : Corporate Counseling Project Counseling Pre investment studies Capital restructuring. Credit Syndication and Project Financing Issue Management and Underwriting.
Portfolio Management Working Capital Finance Acceptance Credit and Bill Discounting Mergers, Amalgamations and Takeovers Venture Capital Lease Financing Foreign Currency Finance
Fixed Deposit Broking Mutual Funds Relief to Sick Industries Project Appraisal
Code of Conduct for Merchant bankers
Integrity Quality Service Fair Practice Responsible statement Best advice Secrecy Information Prospectus
Allotment True Market Compliance
Regulatory Framework
Submission of offer document Dispatch of Issue material Underwriting Compliance obligations Pre issue and Post issue obligations ----
Pre Issue Obligations
1. Obligations 2. Documents to be submitted--------- MOU, Due Diligence Certificate, Certificate signed by professional, Undertaking, List of Promoters¶ Group. 3. Appointment of Intermediate. 4. Underwriting
5. Offer Document to be made public 6. Dispatch of Issue Material. 7. No complaints Certificate. 8. Mandatory collection centers. 9. Authorized collection centers. 10. Advertisement for rights post issue. 11. Appointment of Compliance officer
12. Abridged Prospectus. 13. Agreements with Depositories
Post Issue Obligations
1. 2. 3. 4. 5. 6. 7. 8. Post issue monitoring reports. Redressal of investor grievances. Coordination with intermediaries. Stock Invest Underwriters Banker to issue Post issue advertisements Basis of allotment
9. Reservation of small individual applicants 10. Other responsibilities 11. Certificate regarding realization of stock invests.
