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Unit 12: Merchant Banking and Venture Capital

9. risk, profitability Notes
10. preference
11. existing
12. second round
13. Development Capital

12.11 Review Questions

1. What is the significance of merchant banking in Indian context?
2. What are the SEBI guidelines regarding merchant banking?
3. Write a critical evaluation of the underwriting services in India.
4. Do you think merchant banks in India have been playing the role as needed for them?
5. What is the basis of lending venture capital? Are internet/technology companies given
first priority for funding these days?
6. Is it true that most investors are ready and willing to invest and fund quickly? If not,
explain with reasons.
7. In the past year, what has been the most interesting IPO or acquisition in the industry you
want to enter?
8. Where do venture capitalists get their money from? Do you think venture capitalists in
India have been investing it in the right places?
9. After making a detailed analysis of this unit, what do you think are the main types of
companies and industries that venture capitalists invest in?

10. How do venture capitalists realize a return on their investment?
11. What's the difference between venture capital and private equity? What impact does
corporate venture investing have on the venture industry?

12.12 Further Readings

Books Machiraju, H.R., Merchant Banking: Principles and Practice, New Age
International Pvt. Ltd.
Gurusamy, Merchant Banking And Financial Services, Thomson Learning

Online links www.onemine.org
www.pnbindia.in
www.indbankonline.com
www.canarabank.com
www.investorquestions.com
www.entrepreneur.com
www.findarticles.com

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