It is a person who aids with the subscription of securities. A merchant banker has the functions like:
• Raising funds for the clients
• Project counselling
• Managing promotional activities
• Stock broking
• Loan syndication
• Leasing services
• Portfolio management
Merchant bankers help companies and individuals with high net-worth. SBI was the first commercial bank to set up merchant banking in 1972.
Reasons for the growth of Merchant Banking in India:
• Globalization
• Consumer trends
• Elevated competition
• Governmental interventions
Merchant banking can be defined as a skill-oriented professional service provided by merchant banks to their clients, concerning their financial needs, for adequate consideration, in the form of fee.
Merchant banks are a specialist in international trade and thus, excel in transacting with large enterprises