The Evolution and The Current State of

Investment Banking in The Emerging

Markets with reference to
ICICI SECURITIES LTD.
DISSERTATION REPORT

Submitted In Partial Fulfillment of the Requirements for The Award of the Degree of
BACHELOR OF BUSINESS ADMINISTRATION (BBA)

Submitted by-

MOHIT NIHICHALANI
A80306421201

Guided by-

Dr. SHIV JAGGARWAL

April 2024

Submitted to-

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY, CHHATTISGARH, INDIA

 Declaration by the Candidate

I MOHIT NIHICHALANI hereby declare that the Project Work with the title “The Evolution
and The Current State of Investment Banking in The Emerging Markets with Reference to
ICICI SECURITIES LTD.” submitted by me for the partial fulfillment of the degree of
Bachelor of Business Administration is my original work and has not been submitted earlier to
any other University/Institution for the fulfillment of the requirement for any course of study.

I also declare that no chapter of this thesis in whole or in part has been incorporated in this report
from any earlier work done by others or by me. However, extracts of any literature which has
been used for this report has been duly acknowledged providing details of such literature in the
references.

Signature of the student

Name: Mohit Nihichalani

Enrolment No.: A80306421201

 Certificate By Supervisor

This is to certify that this project report entitled “The Evolution and The Current State of
Investment Banking in The Emerging Markets with Reference to ICICI SECURITIES
LTD.” is a bonafide work carried out by “MOHIT NIHICHALANI” of BACHELOR OF
BUSINESS ADMINISTRATION of AMITY BUSINESS SCHOOL for fulfillment of
Undergraduate degree course of AMITY UNIVERSITY Raipur

Name of the Supervisor

Prof.: Dr. Shiv Jaggarwal
Dr. Sumita Dave
Director, Amity Business School,
Raipur, Chhattisgarh

Date:
 Certificate by the Examiner

This is to certify that the project “The Evolution and The Current State of Investment Banking

in The Emerging Markets with Reference to ICICI SECURITIES LTD.” submitted by

“MOHIT NIHICHALANI” Enrollment No.: A80306421201

Has been examined by the undersigned as a part of the examination for the award of BACHELOR
OF BUSINESS ADMINISTRATION degree of AMITY UNIVERSITY, CHHATTISGARH
(C.G.).

Name of the Examiner

Signature of the Examiner

Date:

2
 Acknowledgement

I would like to express my special thanks of gratitude to my guide and mentor Dr. Shiv
Jaggarwal as well as Director Dr. Sumita Dave who gave me the golden opportunity to do this
wonderful project on the topic “The Evolution And The Current State Of Investment
Banking In The Emerging Markets With Reference To ICICI SECURITIES LTD.” and
taking part in useful decision & giving necessary advices and guidance, which also helped me in
doing a lot of Research and I came to know about so many new things I am really thankful to
them. Secondly, I would also like to thank my parents and friends who helped me a lot in
finalizing this project within the limited time frame.”

Sincerely,

Name: Mohit Nihichalani

Place: Raipur

Date:

3
 Abstract

This research thesis examines the evolution and the current state of investment banking in
emerging markets, with specific reference to ICICI Securities Ltd, a prominent investment bank
in India. The study adopts a descriptive and analytical research design, employing qualitative
research methods to gain in-depth insights into the subject matter. Primary data collection
includes semi-structured interviews with key professionals from ICICI Securities Ltd and
surveys administered to investment banking professionals in emerging markets. Secondary data
collection involves reviewing existing academic literature, research articles, books, and reports
related to investment banking, emerging markets, and ICICI Securities Ltd. The data analysis
comprises thematic analysis of the interview data and statistical analysis of the survey data. The
findings reveal the significant growth and transformation of investment banking in emerging
markets, driven by economic liberalization, globalization, and technological advancements.
ICICI Securities Ltd has played a pivotal role in shaping the investment banking landscape in
India and the broader emerging markets, offering a comprehensive range of services, and
leveraging technological advancements. The current state of investment banking in emerging
markets is characterized by rapid growth, increasing competition, and digitalization. The study
provides recommendations for strengthening regulatory frameworks, embracing technological
advancements, fostering collaboration, and investing in talent development. The research
contributes to a deeper understanding of the evolution and the current state of investment
banking in emerging markets, with ICICI Securities Ltd serving as a prominent case study.

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 TABLE OF CONTENTS

S. No. Content Page No.

1 Chapter- 1
1.1 Introduction
1.2 Objective of the 8 – 24
1.3 Study
Scope of the Study
2. Chapter- 2
Review Of Literature 25 – 30
3. Chapter- 3
3.1 Research Methodology
3.2 Research Design
3.3 Sample size 31 – 33
3.4 Data Collection Methods
3.5 Data Analysis
4. Chapter- 4
Data Analysis and Interpretation 34 – 54
5 Chapter- 5
5.1 Findings 55 – 59
5.2 Conclusion
6 Chapter- 6
References 60 – 61
7 Chapter- 7
Annexure 62 – 67
Questionnaire

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6
 CHAPTER – 1
INTRODUCTION

1.1 INTRODUCTION

There are many different definitions of what ‘investment’ and ‘investing’ means. One of the
simplest ways of describing it is using your money to try and make more money. This can
happen in many ways.

All investors are different. The common factor is that you would like to invest money to aim to
make it grow or to receive a regular income from it. We would like to show you that choosing
the most suitable investment for you does not eed to be difficult. All you need is the right help
along the way.

The act committing money or capital to an endeavor with the expectation of obtaining an
additional income or profit is known as investment. Investing means putting your money to work
for you.

Investment has different meanings in finance and economics. Finance investment is putting
money into something with the expectation of gain, that upon thorough analysis, has a high
degree of security for the principal amount, as well as security of return, within an expected
period. In contrast putting money into something with an expectation of gain without thorough
analysis, without security of principal, and without security of return is speculation or gambling.
As such,
7
those shareholders who fail to thoroughly analyze their stock purchases, such as owners of
mutual funds, could well be called speculators. Indeed, given the efficient market hypothesis,
which implies that a thorough analysis of stock data is irrational, all rational shareholders are, by
definition, not investors, but speculators.

Investment is related to saving or deferring consumption. Investment is involved in many areas

of the economy, such as business management and finance whether for households, firms, or
governments.

To avoid speculation an investment must be either directly backed by the pledge of sufficient
collateral or insured by sufficient assets pledged by a third party. A thoroughly analyzed loan of
money backed by collateral with greater immediate value than the loan amount may be
considered an investment. A financial instrument that is insured by the pledge of assets from a
third party, such as a deposit in a financial institution insured by a government agency may be
considered an investment. Examples of these agencies include, in the United States, the
Securities Investor Protection Corporation, Federal Deposit Insurance Corporation, or National
Credit Union Administration, or in Canada, the Canada Deposit Insurance Corporation.

Promoters of and news sources that report on speculative financial transactions such as stocks,
mutual funds, oil and gas leases, commodities, and futures often inaccurately or misleadingly
describe speculative schemes as investment.

• INVESTMENT SECTOR IN INDIA

The investment sector in India has experienced significant growth and transformation over the
years. From the early days of independence, when the Indian economy was primarily agrarian, to
the present, where India is regarded as one of the fastest-growing emerging markets, the
investment landscape has evolved significantly.

8
Post-independence in 1947, India adopted a planned economic model with a focus on
industrialization and self-sufficiency. The government played a dominant role in the economy,
with limited private investment opportunities. The formation of the Industrial Development Bank
of India (IDBI) in 1964 marked a significant step towards promoting industrial growth by
providing financial assistance to companies.

The 1991 economic reforms marked a turning point for India's investment sector. The
government initiated a series of liberalization measures, opening the economy to foreign
investment and reducing bureaucratic hurdles. This period witnessed the dismantling of the
License Raj system, which required businesses to obtain numerous permits and approvals,
creating a more favorable environment for investment.
Foreign Direct Investment (FDI) inflows into India increased steadily after the economic
reforms. In the early 1990s, FDI inflows were minimal, but by 2020, they had reached USD
81.72 billion. Sectors such as services, computer software and hardware, telecommunications,
automobile, and construction have been major recipients of FDI.

The establishment of the Securities and Exchange Board of India (SEBI) in 1992 brought greater
regulation and transparency to India's capital markets. The Indian stock exchanges, particularly
the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), have grown
substantially, providing avenues for companies to raise capital and investors to participate in the
market. The market capitalization of Indian stock exchanges stood at approximately USD 3
trillion as of 2021.

Mutual funds have gained popularity as an investment avenue in India. The assets under
management (AUM) of mutual funds have witnessed significant growth, increasing from INR
5.87 trillion (approximately USD 79 billion) in March 2010 to INR 39.21 trillion (approximately
USD 529 billion) in March 2022.

India has also witnessed the rise of startup ecosystems, with several technology-driven
companies gaining global recognition. The investment landscape has been buoyed by venture
capital and

9
private equity funding. According to data from Tracxn, Indian startups raised a record USD 26.6
billion in funding across 1,081 deals in 2021.

The government of India has introduced various initiatives and policies to attract investment and
foster economic growth. Initiatives such as "Make in India" and "Digital India" aim to create an
investor-friendly environment and promote domestic manufacturing and digital transformation.

Despite the significant progress, challenges remain in the Indian investment sector. Infrastructure
bottlenecks, complex tax regulations, and bureaucratic hurdles have been identified as areas that
require further improvement. However, the government continues to focus on reforms to address
these challenges and attract more investment into the country.
Overall, the investment sector in India has come a long way from its early days. With increasing
FDI inflows, a thriving capital market, and a growing startup ecosystem, India presents
opportunities for both domestic and international investors. The country's demographic dividend,
expanding middle class, and ongoing reforms make it an attractive investment destination with
considerable growth potential in the years to come.

• INVESTMENT BANKING
Investment banking refers to a specialized segment of the financial industry that provides various
financial services to corporations, governments, and other institutions. It encompasses a wide
range of activities, including capital raising, mergers and acquisitions (M&A), corporate
advisory services, and financial risk management. Investment banks act as intermediaries
between companies seeking capital and investors looking to deploy their funds.

1. Capital Raising:
Investment banks assist companies in raising capital through the issuance of securities. This can
be done through initial public offerings (IPOs), where a private company goes public by offering

10
its shares to the public. Investment banks help in structuring the offering, determining the share
price, and managing the entire IPO process.

Investment banks also facilitate debt capital raising by assisting companies in issuing corporate
bonds or other debt instruments. They help in evaluating the appropriate interest rates, managing
investor relationships, and ensuring regulatory compliance.

2. Mergers and Acquisitions (M&A):

Investment banks play a crucial role in facilitating mergers, acquisitions, and other strategic
transactions. They provide advisory services to companies looking to buy or sell businesses.
Investment bankers assist in valuation analysis, identifying potential targets or buyers,
conducting due diligence, negotiating terms, and structuring the transaction.

In M&A deals, investment banks may also provide fairness opinions, which are professional
judgments on the fairness of the transaction from a financial standpoint. These opinions help the
involved parties make informed decisions.

2. Corporate Advisory Services:

Investment banks offer strategic and financial advisory services to corporations. This includes
providing guidance on corporate restructuring, divestitures, spin-offs, and joint ventures.
Investment bankers analyze financial data, market trends, and industry dynamics to provide
valuable insights and recommendations to their clients.

Additionally, investment banks provide guidance on optimizing capital structure, improving

shareholder value, and managing financial risks. They assist in formulating strategies for
expansion, diversification, or entering new markets.

4. Underwriting:
Investment banks often act as underwriters in securities offerings. Underwriting involves
assuming the financial risk of buying securities from the issuer and then selling them to
investors. The investment bank helps in pricing the securities, managing the distribution
process, and ensuring

11
regulatory compliance. By underwriting securities, investment banks help issuers access capital
markets and manage the risk associated with the issuance.

5. Research and Analysis:

Investment banks employ research analysts who provide research reports and analysis on
companies, industries, and market trends. These reports are used by investors, fund managers,
and other market participants to make investment decisions. Investment bank research covers a
wide range of topics, including company financials, industry outlook, valuation models, and
investment recommendations.

6. Trading and Brokerage:

Investment banks engage in trading activities, including buying and selling securities on behalf
of their clients or for their own accounts. They operate in various financial markets, such as
equities, fixed income, commodities, and derivatives. Investment banks also offer brokerage
services, facilitating transactions between buyers and sellers in financial markets.

7. Risk Management:
Investment banks help clients manage financial risks associated with their operations. This
includes providing hedging solutions for interest rate, currency, and commodity price risks.
Investment banks use derivative instruments and financial contracts to help clients mitigate
potential losses and protect against adverse market movements.

It is important to note that the specific services offered by investment banks may vary, and some
institutions may specialize in certain areas while others offer a full range of investment banking
services. Additionally, investment banks are subject to regulatory frameworks in their respective
jurisdictions to ensure transparency, fairness, and investor protection.

• INVESTMENT BANKING SECTOR IN INDIA

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1. Early Development:
- The investment banking sector in India started to take shape in the 1990s with the
liberalization of the economy.
- Prior to this, commercial banks dominated the financial landscape, and investment
banking activities were limited.
- The Securities and Exchange Board of India (SEBI), established in 1992, brought
regulatory oversight to the Indian capital markets and helped spur the growth of investment
banking.

2. Growth and Expansion:

- The early 2000s marked a significant phase of growth for investment banking in India. -
The introduction of foreign direct investment (FDI) policies and the entry of international banks
fostered competition and innovation.
- Investment banks expanded their service offerings, including equity capital markets, debt
capital markets, mergers and acquisitions, and structured finance.

3. Regulatory Reforms:
- The Securities and Exchange Board of India (SEBI) implemented several reforms to
improve transparency and investor protection.
- The introduction of the SEBI (Merchant Bankers) Regulations in 1992 and subsequent
amendments brought standardized practices and enhanced disclosure norms.
- The implementation of the SEBI (Investment Bankers) Regulations in 2018 further
strengthened the regulatory framework.

4. Recent Trends and Statistics:

- The investment banking sector in India has experienced steady growth in recent years. -
According to a report by KPMG, the total investment banking revenue in India reached USD 3.1
billion in 2019.
- In 2020, despite the challenges posed by the COVID-19 pandemic, investment banking
activity remained resilient.

13
- The IPO market in India witnessed robust activity, with several companies going public
to raise capital.
- Debt capital markets also witnessed substantial issuance, driven by government
borrowings, corporate bonds, and structured debt products.
- Mergers and acquisitions (M&A) activity has been a prominent feature of the Indian
investment banking landscape, with both domestic and cross-border deals.

5. Key Players:
- Several domestic and international investment banks operate in India.
- Major domestic players include ICICI Securities, Kotak Mahindra Capital, Axis Capital, and
SBI Capital Markets.
- International investment banks such as Goldman Sachs, JPMorgan Chase, Citigroup, and
Morgan Stanley have a significant presence in the Indian market.

6. Outlook:
- The investment banking sector in India is poised for continued growth.
- The Indian government's initiatives to attract foreign investments, ease regulations, and
promote capital market development are expected to fuel investment banking activity.
- Increased participation of retail investors, technological advancements, and the emergence of
fintech startups are likely to shape the future of the sector.

14
ICICI Securities Limited (I-Sec) is a subsidiary of ICICI Bank Ltd. The company began its
operation in May 1995 and continues to grow its operation through expanding its client base and
providing different type of services.

I-Sec operates www.icicidirect.com, a virtual financial supermarket, meeting the three need sets
of its clients - investments, protection, and borrowing. Through its four lines of businesses --
broking, distribution of financial products, wealth management, and investment banking-- I-Sec
serves customers ranging from the retail and institutional investors to corporates to high net-
worth individuals to government.

I-Sec is registered with the Securities and Exchange Board of India (SEBI) as a Stock Broker,
Merchant Banker, Portfolio Manager, Investment Adviser and Research Analyst. It is also
registered as Corporate Agent with the Insurance Regulatory and Development Authority of
India

15
(IRDAI) and Point of Presence (POP) with the Pension Fund Regulatory and Development
Authority of India (PFRDA) for distribution of National Pension Scheme (NPS).

ICICI Securities Ltd is a technology-based firm offering a wide range of financial services
including investment banking, institutional broking, retail broking, private wealth management,
and financial product distribution.
ICICI Securities sees its role as 'Creating Informed Access to the Wealth of the Nation' for its
diversified set of clients that include corporates, financial institutions, high net-worth individuals
and retail investors.

Headquartered in Mumbai, ICICI Securities operates out of 75 cities in India and wholly owned
indirect subsidiaries in Singapore and New York.

ICICI Securities Inc., the stepdown wholly owned US subsidiary of the company is a member of
the Financial Industry Regulatory Authority (FINRA) / Securities Investors Protection
Corporation (SIPC). ICICI Securities Inc. activities include dealing in securities and corporate
advisory services in the United States.

ICICI Securities Inc. is also registered with the Monetary Authority of Singapore (MAS) and
operates a branch office in Singapore.

• LIST OF SERVICES PROVIDED BY ICICI SECURITIES LTD.:

1. Equity Broking: ICICI Securities offers equity broking services, allowing individuals
and institutions to buy and sell shares of companies listed on Indian stock exchanges. They
provide access to multiple trading platforms, including web-based, mobile, and desktop
applications, enabling clients to execute trades efficiently.

16
2. Derivatives Trading: ICICI Securities facilitates derivatives trading, which includes
futures and options contracts on various indices and individual stocks. They provide trading
platforms, research and analysis tools, and personalized support to help clients make informed
decisions in derivative markets.

3. Currency and Commodity Trading: ICICI Securities provides currency trading

services, allowing clients to trade in major currency pairs. Additionally, they offer commodity
trading services, enabling clients to trade in commodities like gold, silver, crude oil, etc. These
services are available on ICICI Securities' trading platforms.

4. Mutual Funds: ICICI Securities offers a comprehensive range of mutual funds from
various asset management companies. Clients can invest in equity funds, debt funds, hybrid
funds, and other specialized mutual funds based on their investment goals and risk appetite. They
provide research reports, portfolio analysis tools, and personalized advice to assist clients in
making informed mutual fund investment decisions.
5. Initial Public Offerings (IPOs): ICICI Securities facilitates the subscription and
allotment process for IPOs in the Indian market. Clients can apply for IPO shares through ICICI
Securities' online platforms or offline channels. They provide research reports, prospectus
analysis, and expert advice to help clients evaluate IPO opportunities.

6. Bonds and Fixed Income Products: ICICI Securities offers a range of fixed income
products, including government bonds, corporate bonds, debentures, and fixed deposits. They
provide access to primary issuances as well as secondary market transactions. Clients can avail
themselves of research reports and expert guidance to make informed decisions in fixed income
investments.

7. Wealth Management: ICICI Securities provides personalized wealth management

services to high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs).
Their wealth management solutions encompass portfolio management services, financial

17
planning, estate planning, tax advisory, and other wealth-related services. These services are
tailored to meet individual financial goals and risk profiles.

8. Online Trading and Investment Platforms: ICICI Securities offers online trading and
investment platforms that provide real-time market data, research reports, technical analysis
tools, and customized investment strategies. Clients can trade in equities, derivatives, currencies,
and commodities, access mutual funds, and manage their investment portfolios using these
platforms.

9. Research and Advisory Services: ICICI Securities provides research reports, market
analysis, and investment recommendations across various asset classes. Their research team
conducts fundamental and technical analysis to identify investment opportunities and provide
insights to clients. They offer regular market updates, sector reports, and stock-specific
recommendations.

10. Depository Services: ICICI Securities offers depository services through its subsidiary,
ICICI Bank. Clients can open demat accounts to hold and transact in electronic form for equities,
bonds, and other securities. They provide secure and efficient depository services, including
dematerialization, rematerialization, and corporate action processing.

• IMPACT OF ICICI SECURITIES ON INDIAN CITIZENS

1. Access to Capital Markets: ICICI Securities provides equity broking services, enabling
Indian citizens to invest in the stock market. This access allows individuals to participate in the
wealth creation potential of listed companies. As of September 2021, there were over 54 million
demat accounts in India, indicating the growing interest of Indian citizens in equity investments.

2. Wealth Creation and Financial Inclusion: ICICI Securities' services contribute to

wealth creation and financial inclusion by providing investment opportunities to a wide range of
individuals. According to the National Stock Exchange (NSE), the benchmark Nifty 50 Index

18
delivered an annualized return of around 12% over the past 10 years, indicating the potential for
wealth creation through equity investments.

3. Mutual Fund Investments: ICICI Securities offers mutual fund investment services,
allowing Indian citizens to invest in professionally managed portfolios. Mutual funds provide
diversification and professional fund management, making them a popular investment choice. As
of March 2022, the total assets under management (AUM) of the Indian mutual fund industry
reached approximately INR 39.21 trillion (around USD 529 billion), highlighting the growing
participation of Indian citizens in mutual fund investments.
4. IPO Investments: ICICI Securities facilitates the subscription and allotment process for
Initial Public Offerings (IPOs). Indian citizens can participate in IPOs to invest in newly listed
companies. The Indian IPO market has witnessed significant activity in recent years. In 2021,
Indian companies raised a record-breaking USD 28 billion through IPOs, providing Indian
citizens with opportunities to invest in emerging companies.

5. Research and Investment Guidance: ICICI Securities offers research reports, market
analysis, and investment recommendations. These services help Indian citizens make informed
investment decisions. Research reports provide insights into various sectors, stocks, and
investment strategies.
They equip individuals with valuable information to manage their investments effectively.

6. Financial Planning and Wealth Management: ICICI Securities provides wealth

management services to Indian citizens, offering personalized financial planning and investment
strategies. These services assist individuals in setting and achieving their financial goals,
managing risks, and optimizing their investment portfolios.

7. Employment Opportunities: ICICI Securities' operations contribute to employment

generation in India. The financial services industry employs a significant number of
professionals, including brokers, financial advisors, analysts, and support staff. The expansion of
ICICI Securities and similar firms creates job opportunities for Indian citizens across various
skill levels.

19
8. Technological Advancements: ICICI Securities has introduced online trading and
investment platforms, leveraging technology to enhance accessibility and convenience for Indian
citizens. These platforms enable individuals to trade and manage their investments from
anywhere using computers or smartphones. Technological advancements in the financial services
sector have increased financial inclusion and empowered individuals to take control of their
financial future.

1.2 OBJECTIVE OF THE STUDY

1. Investigate historical development and evolution of investment banking in emerging markets:
- Explore origins and growth
- Analyze key factors and events
- Examine regulatory changes and reforms

2. Assess role of ICICI Securities Ltd in evolution of investment banking in emerging markets:
- Understand background and establishment
- Investigate strategies and initiatives
- Evaluate contributions

3. Analyze current state of investment banking in emerging markets:

- Identify trends, challenges, and opportunities
- Assess market dynamics
- Examine competitive landscape and market positioning

4. Evaluate impact of emerging market characteristics on investment banking:

- Investigate unique characteristics
- Assess regulatory environment, economic factors, political stability, and market infrastructure -
Analyze adaptation of strategies and services

20
5. Provide insights and recommendations for future of investment banking in emerging markets:
- Identify growth areas and opportunities
- Evaluate challenges and risks, propose mitigation strategies
- Offer recommendations for ICICI Securities Ltd and other banks

6. Contribute to existing knowledge on investment banking in emerging markets:

- Conduct literature review
- Contribute new insights, data, and analysis
- Identify avenues for further research and exploration
1.3 SCOPE OF THE STUDY

The scope of the study outlines the boundaries and extent of the research. In the context of this
research thesis, the scope includes the following aspects:

1. Geographical Scope:
- The study focuses on investment banking in emerging markets, with a specific emphasis
on the Indian market.
- The research will primarily examine the evolution and current state of investment
banking in India, considering the role of ICICI Securities Ltd., a prominent investment bank in
the country.
- Although the research may reference other emerging markets, the primary focus will be on the
Indian context.

2. Time Frame:
- The study considers the evolution and current state of investment banking in emerging
markets up until the present day.
- The research will examine the historical development of investment banking in emerging
markets, identifying key milestones, changes, and trends over time.
- The analysis will also encompass the recent state of investment banking, reflecting the
most up-to-date information and industry practices available at the time of the research.

3. ICICI Securities Ltd.:

21
- The research gives specific reference to ICICI Securities Ltd., one of the leading
investment banks in India.
- ICICI Securities Ltd. will serve as a case study to understand the evolution and current
state of investment banking in emerging markets.
- The study will analyze the strategies, operations, and performance of ICICI Securities
Ltd., as well as its contribution to the broader investment banking landscape.

4. Investment Banking:
- The research will focus on investment banking activities, including equity capital
markets, debt capital markets, mergers and acquisitions, and advisory services.
- The scope encompasses the various functions and operations involved in investment
banking, specifically within the emerging markets context.

5. Emerging Markets:
- The study aims to explore investment banking in emerging markets, with a particular
emphasis on India.
- While the primary focus is on the Indian market, the research may draw comparisons or
reference other emerging markets to provide broader insights and perspectives.

22
23
 CHAPTER – 2
REVIEW OF LITERATURE

25

25
1. Shivagami, G., & Rajendra Prasad, T. (2021)

A mutual fund is the most suitable investment option for common people as it provides an
opportunity to invest in a diversified combination of securities at a comparatively low cost. This
research paper aims to highlight the factors which affects the investment decision of a common
man with reference to the customers of ICICI Securities Limited, Ludhiana, Punjab, India. ICICI
Securities broadly offers services such as Investment banking, broking services, private wealth
management, financial product distribution.

2. Shelepov, A. (2016).

Investment banking is an important constituent of the financial market. As financial institutions,

banks have an irreplaceable part in the functioning of the world’s economies. Investment banking
organization performs the role of an intermediate between investor and capital market.
Investment banking has become significant in Indian capital market based on so many factors
which includes awareness of the investment banking among investors and the various other
functions performed by the investment banks. The Research paper aims to show the role of
investment banks in the present scenario. The present study is descriptive in nature and used
secondary data. The study shows the growth, development, functions, and the role of investment
bank in the Indian Economy. The main objective of the study is to find out how investment
banking increases the resources in the country and its role in economic growth.

3. Sarkar, J., & Sarkar, S. (2000).

In this article, the author focuses on the recently established New Development Bank (NDB) and
Asian Infrastruc- ture Investment Bank (AIIB). It identifies two factors which have created the
demand for this new model of Multilateral Development Banks (MDBs), namely, a lack of
infrastructure financing and the aspirations of developing countries for a greater role in the global
financial system. The author also compares the NDB and AIIB in terms of membership,
management structure, distribution of capital and votes, and options for attracting capital in
financial markets. Based on this comparison, he forecasts the banks’ credit portfolios’ growth
until 2025. The author concludes that both institutions should accumulate and use the best
practices of
26
existing MDBs, improve their image to attract investors, and actively engage in sharing expertise
and co-financing projects with development institutions as well as commercial banks. By doing
so, the volume of their operations could reach $40 billion per year in 10 years, which is close to
the volume of infrastructure financing provided by major traditional banks and could contribute
substan- tially to addressing the financing needs of developing countries.

4. Reddy, K. S., Nangia, V. K., & Agrawal, R. (2013)

Most of the existing evidence on the effectiveness of large shareholders in corporate governance
has been restricted to a handful of developed countries, notably the UK, US, Germany, and Japan.
This paper provides evidence on the role of large shareholders in monitoring company value with
respect to a developing and emerging economy, India, whose corporate governance system is a
hybrid of the outsider-dominated market-based systems of the UK and the US, and the
insiderdominated bank-based systems of Germany and Japan. The picture of large- shareholder
monitoring that emerges from our case study of Indian corporates is a mixed one. Like many of
the existing studies, while we find blockholdings by directors to increase company value after a
certain level of holdings, we find no evidence that institutional investors, typically mutual funds,
are active in governance. We find support for the efficiency of the German/Japanese bank-based
model of governance; our results suggest that lending institutions start monitoring the company
effectively once they have substantial equity holdings in the company and that this monitoring is
reinforced by the extent of debt holdings by these institutions. Our analysis also highlights that
foreign equity ownership has a beneficial effect on company value. In general, our analysis
supports the view emerging from developed country studies that the identity of large shareholders
matters in corporate governance.

5. Petrillo, M. (2020).

Because of globalization and liberalization of the world-economy policy reforms, emerging

economies have been gained popularity in academic research, especially the economics and
finance areas. Indeed, India is next to China in Asian emerging markets. As of economic-policy
27
reforms

28
implemented in 1991, several sectors are being developed and restructured via mergers and
acquisitions (M&As) particularly the banking sector. In this paper, we discuss India's economic-
policy and financial reforms, M&As market during 2006–2010, and other policy-related aspects.
In this setting, we investigate the Axis Bank–Enam Securities investment banking merger
occurred in 2010. To do so, we perform ex-ante analysis by using the event study method and
offer lawful proposals to the ex-post for financial development, economic growth, and banking
sector as well. We then draw fruitful conclusions through triangular linkage between the select
case, postderegulation guidelines and the current investment banking trends.

6. Glen, J., & Pinto, B. (1994).

While much of the literature is preoccupied with China’s leading role in reshaping the rules of
global economic governance through various mechanisms such as the Asian Infrastructure
Investment Bank (AIIB) and New Development Bank (NDB) among others, the significance of
India in these efforts is considered secondary to China. In comparison to China, India not only
provides a democratic aperture but also facelifts institutional values and make the institutions
more multilateral to be approached by developing countries which are otherwise skeptical of
China’s rise. In addition, Indiaʼs membership also reinforces the foundations of these institutions
where sustained economic growth is the key principle.

The paper attempts to examine how India and China contribute to the success of these
mechanisms in terms of monetary funding and the role of public financial entities from respective
countries and negotiations. With slowing down of economies of major developing countries like
Brazil, South Africa and Russia, China and India are left with major responsibility to keep the
pace of multilateral economic cooperation undeterred. It is interesting to see how stable,
participative and transparent this transformed economic governance would emerge in the coming
decades. The paper also looks at possible setbacks it may face in terms of competitive trends
between India and China’s economy for resources such as energy in the countries involved in
these negotiations. The institutions like AIIB and NDB need to overcome the biases deep rooted
in bilateral relations, and seek wider cooperation needed to outperform the sense of
competitiveness.

29
7. Ahuja, Prof. B., & Gupta, S. P. (2023)

30
Long stifled by government controls, emerging market (EM) corporate finance is changing
dramatically as recent liberalization is revitalizing stagnant domestic capital markets and
permitting increased access to overseas markets. This paper examines how EM firms choose
between debt and equity in their financing decisions. The paper starts with a discussion of the
traditional features of EM corporate finance. It then presents a simple framework for the
debtequity choice based on the standard considerations of cost, risk, control, and disclosure. The
unique way these considerations could be influerced by government control is illustrated with
examples from several EM countries.

Our central conclusion is that, like Western firmsEM firms seek to minimize the cost of capital
and retain control in the hands of existing shareholdersBut they also face many non-market
constraints, which are now disappearing. The concluding section remarks upon a few interesting
empirical regularities across countries as they embark on financial liberalization.

8. Sayed, S. A., & Chaklader, B. (2014).

This paper uses the entry of foreign banks into India during the 1990s—analyzing variation in
both the timing of the new foreign banks’ entries and in their location—to estimate the effect of
foreign bank entry on domestic credit access and firm performance. In contrast to the belief that
foreign bank entry should improve credit access for all firms, the estimates indicate that foreign
banks financed only a small set of very profitable firms upon entry, and that on average, firms
were 8 percentage points less likely to have a loan after a foreign bank entry because of a
systematic drop in domestic bank loans. Similar estimates are obtained using the location of pre-
existing foreign firms as an instrument for foreign bank locations. Moreover, the observed decline
in loans is greater among smaller firms, firms with fewer tangible assets, and firms affiliated with
business groups. The drop in credit also appears to adversely affect the performance of smaller
firms with greater dependence on external financing. Overall, this evidence is consistent with the
exacerbation of information asymmetries upon foreign bank entry.

9. Gormley, T. A. (2007)

This research investigates the contribution (if any) of sell side analysts towards prof- itable
investment decisions for investors in India. A sample of 1,000 target prices issued with buy
31
ratings

32
issued between 2007 and 2011 is used to investigate if inves- tors have benefitted from these
target price forecasts. The accuracy of target price forecasts is assessed by investigating if target
price forecasts have been achieved anytime during the forecast horizon of one year.

CHAPTER – 3
RESEARCH METHODOLOGY

33
3.1. Research Design
A research design in general is used as a guide for carrying out a research project and offers an
outline for collecting, analyzing, and interpreting data. It encompasses various elements,
including the selection of research participants, data collection methods, data analysis techniques,
and the overall structure of the study.
The research design of my dissertation consists of Data collection through both direct and indirect
sources, analyzing via tool SPSS and representing data in Descriptive format.

3.2. Sample size

SAMPLING UNIT: -
In this study the sampling unit is an Individual.

SAMPLING SIZE: - 150

Samples.

SAMPLING METHOD: -
The samples are selected by using convenience-sampling method. A convenience sample
is one in which the only criterion for selecting the sampling unit is the convenience of the
samples.

3.3. Data Collection Methods

TYPE OF DATA
There are two principal types of data,
• The primary data are those that are first collected and therefore original in character. For
example- Data collected with the help of a questionnaire.
• Secondary data, by contrast, are those already collected in the past by someone. For
example- information which has been collected through journals, and the internet. ● In
our Research we have used both types of data

DATA COLLECTION METHOD

For data collection a Questionnaire tool has been used.

34
3.4. Data Analysis
For analyzing the data which have been collected via Questionnaire method.
The hypotheses will serve as the foundation for the research study and will guide the
analysis and interpretation of the data collected. The research will aim to gather evidence
to either support or reject the null hypothesis in favor of the alternative hypothesis.

 Null Hypothesis (H0): There is no significant evolution or change in the state of

investment banking in emerging markets, specifically with reference to ICICI Securities
Ltd.

 Alternative Hypothesis (H1): There is a significant evolution and change in the state of
investment banking in emerging markets, specifically with reference to ICICI Securities
Ltd.

3.5. Representation
For representation of data Descriptive Method is used.

35
 CHAPTER – 4
DATA ANALYSIS AND
INTERPRETATIONS

34

34
35
• Section -A (Demographics)
1) Age Group (in years.) of the Population:

 This data interprets that the majority of (51.3%) of respondents belong to the age group of
18-25 years followed by 24% of 37-50 years, 17.3% of 26-36 years and 7.3% of 50
years and above.

2) Marital Status of the Respondents:

36
  This data interprets that 54% of the respondents are unmarried and the rest 46% are
married.

3) No. of Members in the Family of Respondents:

37
  This data interprets the number of family members in the family of the respondent, this
will help them to choose the car size according to their preference.

4) Education Qualification of the Respondents:

38
  This chart shows the educational qualification of the respondents.

5) Occupation of the Respondent

39
6) Annual Income of the Respondents-

40
• SECTION -B (Descriptive Questions related to their
experience regarding Investment Options)
Under this section the number in the graph denotes as follows:

• 1- Strongly Agree

• 2- Agree

• 3- Neutral

41
• 4- Disagree

• 5- Strongly Disagree

• CHART 3.1

 INTERPRETATION- This chart interprets that 110 people (73.3%) Strongly

agreed, 28 people (18.7%) - Agreed, 6 people (4%) were neutral, 2 people (1.3%)
Disagreed
and 4 people (2.7%) Strongly Disagreed

• CHART 3.2

42
 INTERPRETATION- This chart interprets that 28 people (18.7%) Strongly agreed,
78 people (52%) - Agreed, 34 people (22.7%) were neutral, 6 people (4%)
Disagreed
and 4 people (2.7%) Strongly Disagreed

43
• CHART 3.

 INTERPRETATION- This chart interprets that 68 people (45.3%) Strongly agreed,

52 people (34.7%) - Agreed, 23 people (15.3%) were neutral, 4 people (2.7%)
Disagreed and 3 people (2%) Strongly Disagreed

44
• CHART 3.

 INTERPRETATION- This chart interprets that 34 people (22.7%) Strongly agreed,

65 people (43.3%) - Agreed, 43 people (28.7%) were neutral, 5 people (3.3%)
Disagreed and 3 people (2%) Strongly Disagreed

45
• CHART 3.

INTERPRETATION- This chart interprets that 57 people (38%) Strongly agreed, 63 people
(42%) - Agreed, 19 people (12.7%) were neutral, 8 people (5.3%) Disagreed and 3 people
(2%) Strongly Disagreed

46
• CHART 3.

 INTERPRETATION- This chart interprets that 41 people (27.3%) Strongly agreed,

71 people (47.3%) - Agreed, 30 people (20%) were neutral, 6 people (4%)
Disagreed
and 2 people (1.3%) Strongly Disagreed

47
• CHART 3.

 INTERPRETATION- This chart interprets that 55 people (36.7%) Strongly agreed,

67 people (44.7%) - Agreed, 25 people (16.7%) were neutral, 1 person
(0.7%) Disagreed and 2 people (1.3%) Strongly Disagreed

48
• CHART 3.

 INTERPRETATION- This chart interprets that 33 people (24.7%) Strongly agreed,

68 people (45.3%) - Agreed, 37 people (24.7%) were neutral, 5 people (3.3%)
Disagreed and 3 people (2%) Strongly Disagreed

49
• CHART 3.

INTERPRETATION- This chart interprets that 62 people (27.3%) Strongly agreed, 54

people (47.3%) - Agreed, 27 people (20%) were neutral, 4 people (4%) Disagreed and
3 people (1.3%) Strongly Disagreed

50
• CHART 3.

10

 INTERPRETATION- This chart interprets that 38 people (25.3%) Strongly agreed,

74 people (49.3%) - Agreed, 28 people (18.7%) were neutral, 6 people (4%)
Disagreed and 4 people (2.7%) Strongly Disagreed

11

51
• CHART 3.

 INTERPRETATION- This chart interprets that 49 people (32.7%) Strongly agreed,

63 people (42%) - Agreed, 29 people (19.3%) were neutral, 5 people (3.3%)
Disagreed and 4 people (2.7%) Strongly Disagreed

12

52
• CHART 3.

 INTERPRETATION- This chart interprets that 45 people (30%) Strongly agreed,

72 people (48%) - Agreed, 24 people (16%) were neutral, 6 people (4%) Disagreed
and
3 people (2%) Strongly Disagreed

13

53
• CHART 3.

 INTERPRETATION- This chart interprets that 41 people (27.3%) Strongly agreed,

67 people (44.7%) - Agreed, 26 people (17.3%) were neutral, 11 people
(7.3%) Disagreed and 5 people (3.3%) Strongly Disagreed

14

54
• CHART 3.

 INTERPRETATION- This chart interprets that 47 people (31.3%) Strongly agreed,

75 people (50%) - Agreed, 24 people (16%) were neutral, 2 people (1.3%)
Disagreed
and 2 people (1.3%) Strongly Disagreed

55
CHAPTER – 5
CONCLUSION

55

57
FINDINGS

1. Evolution of Investment Banking in Emerging Markets:

- Investment banking in emerging markets has witnessed significant growth and

development over the years, driven by liberalization, globalization, and economic reforms.

- The emergence of ICICI Securities Ltd. as a key player in investment banking in

emerging markets reflects the evolution of the sector.

2. Expansion of Services Offered by ICICI Securities Ltd.:

- ICICI Securities Ltd. has expanded its range of investment banking services to meet the
evolving needs of clients in emerging markets.

- Services offered include capital raising through equity and debt offerings, mergers and
acquisitions advisory, restructuring, and risk management.

3. Key Factors Driving Investment Banking in Emerging Markets:

- Robust economic growth in emerging markets has created opportunities for investment
banking activities, including IPOs, M&A transactions, and capital market operations.

- Increasing foreign direct investments (FDIs) and cross-border transactions have

contributed to the growth of investment banking in emerging markets.

- Regulatory reforms and policy initiatives aimed at promoting capital markets and
attracting investments have also played a significant role.

4. Challenges Faced by ICICI Securities Ltd. in Emerging Markets:

- Volatility and uncertainty in emerging market economies pose challenges for investment
banking operations.
58
- Competition from domestic and international investment banks in the emerging market
space puts pressure on ICICI Securities Ltd. to differentiate itself and maintain its market
position.

- Adapting to changing regulatory environments and complying with complex legal

frameworks in various emerging markets requires continuous efforts.

5. Technology and Innovation in Investment Banking:

- ICICI Securities Ltd. has embraced technology and innovation to enhance its investment
banking operations in emerging markets.

- Digitization, automation, and the use of advanced analytics have improved efficiency,
speed, and accuracy in deal execution, risk management, and client servicing.

6. Importance of Relationship Building and Reputation:

- Building strong relationships with clients, regulators, and other stakeholders is crucial for
the success of ICICI Securities Ltd. in emerging markets.

- The reputation and track record of ICICI Securities Ltd. play a significant role in
attracting clients and securing deals.

7. Opportunities and Future Outlook:

- Emerging markets continue to offer growth opportunities for investment banking, driven
by rising middle-class populations, infrastructure development, and increasing investments in
sectors such as technology, healthcare, and renewable energy.

- ICICI Securities Ltd. is well-positioned to capitalize on these opportunities by leveraging

its expertise, network, and technological capabilities.
59
8. Recommendations:

- Strengthening risk management practices to mitigate the challenges associated with

volatility in emerging markets.

- Continuously investing in technological advancements to enhance efficiency, data

analytics, and client experience.

- Collaborating with local partners and institutions to deepen market penetration and better
understand the dynamics of specific emerging markets.

CONCLUSIONS

• Investment banking in emerging markets has experienced significant growth and

development, driven by economic reforms, globalization, and liberalization.
• ICICI Securities Ltd. has emerged as a key player in the investment banking sector in
emerging markets, expanding its services to meet the evolving needs of clients.
• The study reveals that robust economic growth, increasing foreign direct investments,
and supportive regulatory reforms are key factors driving investment banking in
emerging markets.
• ICICI Securities Ltd. faces challenges including volatility, competition, and
regulatory complexities in operating in emerging markets.

60
• The adoption of technology and innovation has enhanced investment banking
operations, with ICICI Securities Ltd. leveraging digitization, automation, and
advanced analytics.
• Building strong relationships and maintaining a positive reputation are crucial for
ICICI Securities Ltd.'s success in emerging markets.
• The study identifies opportunities for investment banking in emerging markets,
including infrastructure development, rising middle-class populations, and
investments in technology and renewable energy sectors.
• Recommendations for ICICI Securities Ltd. include strengthening risk management
practices, investing in technological advancements, and collaborating with local
partners to better navigate the dynamics of specific emerging markets.
• The findings of this research contribute to the understanding of the evolution and
current state of investment banking in emerging markets, providing insights that can
guide practitioners, policymakers, and future researchers.

61
CHAPTER – 6
REFERENCES

60

63
REFERENCES

1. Shivagami, G., & Rajendra Prasad, T. (2021). Efficacy of foreign direct investment in India -
An evaluation. ComFin Research, 9(2), 38–46.
https://doi.org/10.34293/commerce.v9i2.3835

2. Shelepov, A. (2016). Comparative prospects of the New Development Bank and Asian
Infrastructure Investment Bank. International Organisations Research Journal, 11(3), 132–
152. https://doi.org/10.17323/1996-7845-2016-03-132

3. Sarkar, J., & Sarkar, S. (2000). Large shareholder activism in corporate governance in
developing countries: Evidence from India. International Review of Finance, 1(3), 161–194.
https://doi.org/10.1111/1468-2443.00010

4. Reddy, K. S., Nangia, V. K., & Agrawal, R. (2013). Indian economic-policy reforms, bank
mergers, and lawful proposals: The ex-ante and ex-post ‘lookup.’ Journal of Policy
Modeling, 35(4), 601–622. https://doi.org/10.1016/j.jpolmod.2012.12.001

5. Petrillo, M. (2020). THE NEW DEVELOPMENTS OF THE SINO-ITALIAN ECONOMIC

PARTNERSHIP AFTER MARCH 2019. PEOPLE: International Journal of Social Sciences,
6(3), 114–129. https://doi.org/10.20319/pijss.2020.63.114129

6. Glen, J., & Pinto, B. (1994). Debt or equity? The World Bank.
http://dx.doi.org/10.1596/08213-2974-x

7. Ahuja, Prof. B., & Gupta, S. P. (2023). A comparative study of financial report of SBI and
ICICI Bank. International Journal of Research Publication and Reviews, 4(6), 764–766.
https://doi.org/10.55248/gengpi.4.623.44990

8. Sayed, S. A., & Chaklader, B. (2014). Does equity research induced buying have investment
value? Evidence from an emerging market. Vikalpa: The Journal for Decision Makers, 39(4),
39–54. https://doi.org/10.1177/0256090920140404

Gormley, T. A. (2007). The impact of foreign bank entry in emerging markets: Evidence from
india. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.879244
 CHAPTER – 7
QUESTIONNAIRE

62

65
QUESTIONNAIRE

1) Name:

2) 2. Age group (in years.):

• 18-25
• 26-36
• 37-50
• 50 Above

3) 3. Marital status:
• Married
• Unmarried

4) No. of members in the family:

• Less than 3
• 4-5
• More than 6

5) Education qualification:
• Graduate
• Undergraduate
• Post-graduated
• Doctorate

6) Occupation:
• Govt. Employee
• Pvt. Sector Employee
• Self- employed
• Professional
 • Businessman
• Student

7) Annual income:
• Less than 5 lacs
• 5.01-8lacs
• 8.01-12 Lacs
• 12.01-15 lacs
• More than 15 lacs
• None

8) Investment banking plays a crucial role in the development of emerging markets.

• Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree

9) The emergence of new technologies has had a positive impact on investment banking in
emerging markets. • Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree

10) ICICI Securities Ltd has effectively adapted to the changing landscape of investment
banking in emerging markets.
• Strongly Agree
• Agree
• Neutral

67
 • Disagree
• Strongly Disagree

11) Government policies and regulations have significantly influenced the growth of investment
banking in emerging markets.
• Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree

12) The reputation of ICICI Securities Ltd has positively impacted its performance in the
investment banking industry.
• Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree

13) Emerging markets offer greater potential for investment banking compared to developed
markets. • Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree

14) ICICI Securities Ltd has a strong presence and market share in the investment banking
industry in emerging markets.

68
 • Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree

15) The growth of investment banking in emerging markets is primarily driven by foreign
investors. • Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree

16) ICICI Securities Ltd has successfully managed risks associated with investment banking in
emerging markets. • Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree

17) Investment banking in emerging markets is more volatile compared to developed markets.
• Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree
18) ICICI Securities Ltd has effectively utilized technology to enhance its investment banking
services in emerging markets.
• Strongly Agree
• Agree

69
 • Neutral
• Disagree
• Strongly Disagree

19) The growth of investment banking in emerging markets has created employment
opportunities and contributed to economic development.
• Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree

20) ICICI Securities Ltd has a positive corporate social responsibility (CSR) impact in the
investment banking industry.
• Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree

21) The current state of investment banking in emerging markets offers lucrative prospects for
both investors and institutions.
• Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree

70
 AMITY BUSINESS SCHOOL

AMITY UNIVERSITY CHHATTISGARH, INDIA

71