Q: What are the functions of Merchant banking in India ?

Ans: Functions of Merchant Banking in India :

Merchant Bankers in India carry out following functions and services specifically :

1. Corporate Counseling and Project Counseling.

2. Pre-investment studies and Capital restructuring.

3. Credit Syndication

4. Issue Management and Underwriting

5. Portfolio Management and Working Capital Finance

6. Acceptance Credit and Bill Discounting

7. Mergers, Amalgamations and takeovers

8. Venture Capital

9. Lease Financing

10. Foreign Currency Finance and Fixed deposit broking


11. Mutual Funds

12. Project Appraisal

Venture Capital: Start up companies with a potential to grow need a certain amount of investment. Wealthy investors like to invest their capital in such businesses with a long-term growth perspective. This capital is known as venture capital and the investors are called venture capitalists.

Acceptance Credit: 

A banker's acceptance is a type of credit in which a time draft is honored by a bank. 

Lease Financing: 
In Lease Financing, the ownership of an asset lies with the lessor. Lessee has the right to use the equipment and does not have the option to purchase.




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