Merchant Banker

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