Recent Development in Merchant Banking in India: An Review | Original Article

ABSTRACT:

The term merchant bank refers to a financial institution that invests in businesses in exchange for ownership stakes rather than interest payments. Merchant banks also provide their client companies with advice on corporate issues. The phrase merchant bank has historical significance in Britain and refers to a financial institution there. Merchant banks may be thought of as financial administrations firms that also engage in private value speculating and provide venture banking and other subsidiary services. Since a merchant bank serves as a consultant, middleman, and leader, it takes a longer-term view than the typical investment bank and is more concerned with the viability of each investment opportunity and the provision of sound advice to each client business. Commonly used to refer to Investment Banks, commercial banks have a long history in banking. In addition, it may be used to characterize the banking industry's private value activities. From the Middle Ages forward, this article focuses on the background of banking as it was developed by merchants. A nation's economic growth is directly proportional to the strength of its business sector, which is why merchant banking is so important. Recent development in merchant banking in India.