Merchant Banking
                     Merchant Banking
Introduction
Merchant banking is a professional 
service provided by the merchant 
banks to their customers considering 
their financial needs, for adequate 
consideration in the form of fee. 
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About Merchant banks 
Merchant banks are banks that 
conduct fundraising, financial 
advising and loan services to large 
corporations.
These banks are experts in 
international trade, which makes 
them experts in dealing with large 
corporations and industries. 
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Provides 
funds
Merchant banking provides funds to the 
multinational businesses and large business 
entities in the country which helps to boost the 
country’s economic strength.
Merchant banks do not provide services to the 
general public; their services are limited to 
business entities and large business corporations.
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Merchant 
banker
Merchant banker is a person who provides 
assistance for the subscription of securities. 
The merchant banker plays an important 
role and carries a lot of responsibilities like, 
private placement of securities, managing 
public issue of securities, stock broking, 
international financial advisory services, etc.
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Functions of 
Merchant Banking
Portfolio Management
Merchant banking provides 
investment advice to the investors to 
make the investment decisions. The 
merchant bank provides portfolio 
managing assistance to the investors 
by trading securities on their behalf.
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Raising funds for clients
Merchant banks assist clients in 
raising funds from the domestic and 
international market by buying 
securities.
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Promotional activities
The merchant bank also helps in the 
promotion of the business institute in 
its initial stages. It helps the 
organisation to work on their 
business idea and to get the approval 
from the government.
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Loan Syndication
This is the service provided by 
merchant banks to its clients for 
raising credit from banks and 
financial institutions.
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Leasing Services
Merchant banks also provide leasing 
services to their customers.
Merchant banking provides a lot of 
support and opportunities for new 
businesses. This in turn also has a 
positive effect on the country’s 
economic growth.
Source: cleartax.in 
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