Prof.

Sadique Shaikh

Department of Management Studies

Certificate

This is to certify that Ms. Megha Santosh Narkar has worked and duly completed
his Project Work for the degree of Bachelor of Management Studies under the Faculty
of Commerce in the subject of Project Report and his project is entitled, “An
Analysis of Merchant Banking in India” under my supervision. I further certify that
the entire work has been done by the learner under my guidance and that no part of it
has been submitted previously for any Degree or Diploma of any University. It is his
own work and facts reported by his personal findings and investigations.

(Prof. Sadique Shaikh)

Date of Submission:

(External Examiner) (Internal Examiner)

PRINCIPAL

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Ms. Megha Santosh Narkar
T.Y.B.M.S (Finance)
Roll No.: 183513
Department of Management Studies
Vidya Vikas Education Society’s
Vikas College of Arts, Science & Commerce
Kannamwar Nagar II, Vikhroli (E), Mumbai 400 083

Declaration of learner

I the undersigned Ms. Megha Santosh Narkar here by, declare that the work
embodied in this project work titled “An Analysis of Merchant Banking In India”
forms my own contribution to the research work carried out under the guidance of
Prof. Sadique Shaikh is a result of my own research work and has not been
previously submitted to any other University for any other Degree/ Diploma to this or
any other University.

Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Certified by, Megha Santosh Narkar

Prof. Sadique Shaikh

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 Acknowledgement

To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank University of Mumbai for giving me chance to do

I would like to thank my Principal, Dr. R. K. Patra for providing the necessary
facilities required for completion of this project.

I take this opportunity to thank our Coordinator, Prof Sarika Surve for her moral
support and guidance.

I would also like to express my sincere gratitude towards my project guide Prof.
Sadique Shaikh whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference
books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported
me throughout my project.

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Executive Summary:

Although merchant banking activity was ushered in two decades ago, it was
only in1992 after the formation of Securities and Exchange Board of India
that it is defined and a set of rules and regulations in place. Today a merchant
banker is who has the ability to merchandise that is, create or expand a need and
fulfil capital requirements.

I have given an overview about the financial markets and the role of merchant
bankers in the growth of these markets. My project covers how the merchant
banks works, rules and regulations laid by SEBI and its impact on the
merchant banking activities. Their importance in the economy is expected to
grow even further in the coming years with an increasing proportion of
household savings getting invested in corporate and other securities. Hence,
my project covers the challenges and advantages, which India will get and is
getting by merchant banking activities. I have covered several services
provided by Merchant Bankers and the role of Merchant bankers in providing
those services to the business world.

Finally, the top players, which exist in merchant banking, are also covered;
their services are also been focused. To get the practical knowledge about
Merchant banking activities I have interviewed visited State Bank of India,
Kotak Mahindra Bank and SPA Merchant bankers’ ltd.

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 INDEX

Chapter
Content Page No.
No.
1 Introduction 1 – 48

2 Research Methodology 49 – 52

3 Literature Review 53 – 58

4 Data Collection, Analysis and Interpretation 59 – 70

5 Conclusion and Suggestions 71 – 76

6 Bibliography 77 – 79

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 Sr. No. Title Page No.
Chapter 1 – Introduction
1.1 Introduction to Merchant Banking 2
1.1.1 Original Definition 2
1.1.2 The Focus Definition 2
1.2 History of Merchant Banking 2
1.3 Traditional Merchant Banking 3
1.4 Modern Merchant Banking 4
1.5 Who Merchant Bankers 4
1.6 Functions of Merchant Bankers 6
1.7 Services Provided By Merchant Bankers 7
1.8 Significance Of The Study 10
1.9 Merchant Banking In India 11
1.10 Merchant Banking In India – An Overview 11
10.1 Merchant Banker Registered with SEBI 12
10.2 Main Functions of Merchant Bankers 12
10.3 Developments of Merchant Bankers 15
10.11 Registration Of Merchant Bankers 16
10.12 Procedures for getting Registration 17
10.12.1 Registration fee payable to SEBI 17
10.13 Leading Merchant Bankers in India 18
10.14 Role of Merchant Banking in India 19
10.14.1 Merchant Banking 20
10.14.2 Factors Responsible For Changes 20
10.15 Scope for Growth Of Merchant Banking In India 20
10.16 Problems of Merchant Banking 23
Difference Between Commercial Banking & Merchant
10.17 24
Banking
Difference Between Investment Banking & Merchant
10.18 24
Banking
1.19 Brief Analysis Of Merchant Banking In India 26
1.20 Present Scenario of Indian Merchant Banking 51
1.21 Final Rule Of Merchant Banking Activities 53
Chapter 2 – Research Methodology
2.1 Objectives 55
2.2 Research Methodology 55
2.3 Focus of the Study 56
2.4 Conceptual of the Study 56
2.5 Study Plan 57
2.6 Limitation of Study 57
Chapter 3 – Literature Review
3.1 Review of Exciting Literature 59
3.2 Literature Survey 60

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Chapter 4 – Data Analysis, Interpretation and Presentation
4.1 Analysis & Interpretation 65
4.2 Comparison Between Public & Private Sectors 75
Chapter 5 – Conclusion and Suggestions
5.1 Conclusion 77
5.2 Suggestions 80
Bibliography 78
Questionaries’ 85
Appendix 87

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