RESPONSIBILITY OF MERCHANT BANKER

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abhishreshthaa

Abhijeet S
WHAT ARE THE RESPONSIBILITY OF MERCHANT BANKER

  • A company has to appoint a merchant banker for carrying out buyback operations.

  • The merchant banker shall ensure that the company is able to implement buyback.

  • To ensure that the escrow account requirement is fulfilled.

  • To ensure that the public announcement has been made in compliance with the Regulations & the offer has been duly filed.

  • To ensure compliance by the company provisions of sections 77A & 77B and any other laws or rules.

  • On completion of the buyback obligation by the company, the merchant banker has to inform the bank for release of securities from the escrow account.

  • A final report has to be sent to SEBI on completion of buyback.
 
Meaning and Definition of Merchant Bank

A merchant bank is a financial institution that provides capital to companies in the form of share ownership instead of loans. A merchant bank also provides advisory on corporate matters to the firms in which they invest. In the United Kingdom, the term "merchant bank" refers to an investment bank.

Leading merchant bankers in India

In India, there are public sector, private sector as well as foreign players in the merchant banking industry.

Public sector: SBI Capital Markets, Punjab National bank, IFCI Financial Services

Private sector: ICICI Securities, Axis Bank, Bajaj Capital, Tata Capital Markets, Yes Bank, Kotak Mahindra Capital Company, Reliance Securities

Foreign merchant bankers: Goldman Sachs (India) Securities, Morgan Stanley India, Barclays Securities (India), Bank of America, Citigroup Global Markets India
 
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