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Sahil Thanwani

Origin of Merchant Banking

13th Century merchant bankers were

traders of commodities and acted as bankers to the kings of European states. They Financed the continental wars and coastal trades. They lent their names to lesser known traders by accepting bills through which they guaranteed that
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Factors to select a MB
Ethics and integrity. Reputation. Trained & committed manpower. Concern & interest of clients. Liaison and networking. Relationship & Contacts. Infrastructure. Past performance.
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Factors to select a client.

Track record of the company. Track record of the promoters. Professional management. Financial strength of the promoters

and the company. Economic viability of the project.

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Prime Objectives of MB
Providing long term funds to the

projects or companies. Project counseling- loan syndication, project appraisal and arrangement of Working capital. Deciding the capital structure. Portfolio Management Underwriting Corporate advisory & issue mgmt.
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Emerging Areas.
Private placements with NRIs and

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FIIs. Brought out deals. Market Making OTC NSE Forex Financial engineering- M&As, capital restructuring.
Sahil Thanwani

SEBI (MB) Regulations, 1992

Code of Conduct for MB
Observe high standards of

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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
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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)
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Not make exaggerated statements,

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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
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A MB shall not divulge to other

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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
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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.

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Qualities of a good MB
Leadership Aggressive action Co-operative and friendliness Contacts Attitude towards problem solving Inquisitiveness for new skills, information and

knowledge

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