Merchant Banking: Prepare By: Chandan Gupta
Merchant Banking: Prepare By: Chandan Gupta
Merchant Banking: Prepare By: Chandan Gupta
Press and investor conferences. Deciding the pattern of advertisement. Deciding the collection branches where
application can be received or collected. Deciding on the dates of opening and closing of the subscription list. Obtain daily report of the applications and amounts collected at branches.
Obtaining subscription to the issue. Obtain consent of the Stock Exchange and
get basis of allotment approved. Looking at the above roles of the MB a company should choose one after a lot of research into his integrity, expertise, competence.
Ethics and integrity. Reputation. Trained & committed manpower. Concern & interest of clients. Liaison and networking. Relationship & Contacts. Infrastructure. Past performance.
Financial Markets and Services Kiran Bindu
Factors to select a MB
Prime Objectives of MB
Emerging Areas.
Private placements with NRIs and FIIs. Brought out deals. Market Making OTC NSE Forex Financial engineering- M&As, capital
restructuring.
Financial Markets and Services Kiran Bindu
Observe high standards of integrity and fairness in all his dealings. Render high standard of service, exercise due diligence, proper care, exercise independent judgment & disclose conflict of interest while providing unbiased service.
Financial Markets and Services Kiran Bindu
Code of conduct continued.. Not make any statement or become privy to any act, practice or unfair competition, likely to harm the interest of other MB or is likely to place such other MB in a disadvantageous position in relation to the MB, while competing for or executing any assignment. (Harmful statement while solicitation & execution)
Financial Markets and Services Kiran Bindu
Not make exaggerated statements, written or oral, to the client either about the qualification or the capability to render certain services or his achievements in regard to services rendered to other clients. Render best possible advice to the client having regard to the clients needs and the environment and his own professional skill; Ensure that all professional dealings are effected in a prompt, efficient and cost effective manner.
Financial Markets and Services Kiran Bindu
A MB shall not divulge to other clients, press or any other party any confidential information about his client, which has come to his knowledge. Deal in securities of the client company without making disclosure to the board as required under the regulation and also to the Board of Directors of the client company. Provide investors with true and adequate information without making any misguiding or
exaggerated
claims and are aware of attendant risks before any investment decisions are made. Ensure copies of prospectus, memorandum and related literature are made available to investors. Fair allotment of securities and refund of application money without delay. Investor complaints are adequately dealt with.
Financial Markets and Services Kiran Bindu
Responsibilities. Chapter IV Procedure for Inspection. Chapter V Procedure for Action in case of Default.
Financial Markets and Services Kiran Bindu
Schedule 1 Forms
Form A Application for Grant of
Certificate/Renewal of Certificate. Form B Certificate of Registration. Form C Due diligence certificate.
Qualities of a good MB
Leadership Aggressive action Co-operative and friendliness Contacts Attitude towards problem solving Inquisitiveness for new skills, information
and knowledge
Financial Markets and Services Kiran Bindu