Merchant banking is- a financial intermediation that matches entities that need capital and those that have

capital. Hence they facilitate the flow of capital in the market. Changing role of a merchant banker In the past The role of the merchant banker was to arrange the necessary capital and ensure that the transaction would be implemented i.e. a financial intermediary facilitating the flow of capital among the concerned parties. Today A merchant banker plays multiple roles which include those of an entrepreneur, a management advisor, an investment banker, and a transaction broker. This shows that the breadth and depth of a merchant bankers activity has changed over the years. Services offered: The wide gamut of services offered by a merchant banker include: Issue management- this forms the Bread and Butter operations for most merchant bankers. The main area of service involves:

!nstrument designing "ricing of the issue #egistration process for the issue of shares $nderwriting of the issue %arketing efforts &inal allotment to investors 'isting details on stock e(changes

Corporate advisory services %erchant bankers offer customised solutions to solve the financial problems of their clients. Advice is sought in areas of financial structuring )as shown in the %odern %anufacturing case above*. %erchant bankers study the working capital practices that e(ist within the company and suggest alternative policies. They also advise the company on rehabilitation and turnaround strategies, which would help companies to

recover from their current position. They also provide advice on appropriate risk management strategies like hedging strategies. Project advisory services %erchant bankers help clients to conceptualise the pro+ect idea, to carry out feasibility studies to find out the viability of the pro+ect, and also to appraise their pro+ect. Loan syndication These financial intermediaries arrange loans, for their clients, by analysing their cash flow pattern, so that the terms of borrowing meet the clients cash re,uirements. They also offer assistance in loan documentation procedures. Restructuring strategies %erchant bankers assist the management of the client company to successfully restructure various activities, which include mergers and acc,uisitions, divestitures, management buyouts, +oint venture among others. To help companies achieve the ob+ectives of these restructuring strategies, the merchant banker participates in different activities at various stages which include understanding the ob+ectives behind the strategy )ob+ectives could be either to obtain financial, marketing, or production benefits*, and help in searching for the right partner in the strategic decision and financial valuation of the proposal. Conclusion The merchant banker plays a vital role in channeli-ing the financial surplus of the society into productive investment avenues. Hence before selecting a merchant banker, one must decide what are the services for which he is being approached. .electing the right intermediary who has the necessary skills to meet the re,uirements of the client will ensure success.