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Financial Institutions and Services
Notes 10. Their knowledge in ..................... make merchant banks specialists in dealing with
multinational corporations.
11. The most familiar role of the merchant bank is stock ..................... .
12. The merchant bank files all the paperwork required with the various market ......................
13. Merchant Banks are popularly known as ..................... .
14. ..................... includes preparation of project reports, deciding upon the financing pattern
to finance the cost of the project and appraising the project report.
15. ..................... refers to investment in different kinds of securities.
14.9 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. Elucidate upon the functions of merchant banks.
5. Do you think merchant banks in India have been playing the role as needed for them?
6. Comment on the significance of the underwriters in India.
7. Elucidate upon the effect of the SEBI guidelines regarding merchant banking in India.
8. Analyse cases to examine how merchant banks have helped their clients in the field of
offshore financing. Cite at least 3 Indian cases to explain the same.
9. "Merchant banks act as an intermediary whose main job is to transfer capital from those
who own it to those who need it." Comment.
10. Examine the growth of merchant banking in India since 1991.
11. Where does the merchant banking in India stand when compared to their global
counterparts, especially those of US and UK?
Answers: Self Assessment
1. capital issues 2. counseling
3. three 4. long-term viability
5. merger 6. expiry
7. Securities and Exchange Board of India 8. bank's own
9. investment 10. international finances
11. underwriting 12. authorities
13. issuing and accepting houses 14. Project counselling
15. Portfolio
210 LOVELY PROFESSIONAL UNIVERSITY