Professional Documents
Culture Documents
MANAGEMENT
[2009]
SYNOPSIS OF INVESTMENT
BANK
SUBMITTED BY:
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INVESTMENT BANKING
Introduction
Investment banking is a specific division of banking related to the
creation of capital for other companies. Investment banks
underwrite new debt and equity securities for all types of
corporations. Investment banks also provide guidance to issuers
regarding the issue and placement of stock.
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Industry coverage
Corporate Finance
Capital Markets
Project Finance
Structured Finance
Derivatives
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Institutional Sales
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Evolution of investment banking in India
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The market turned bullish again in the end of 1993 after the
tainted shares problem was substantially resolved. There was a
phenomenal surge of activity in the primary market. The
registration norms with the SEBI were quite liberal. The low entry
barriers coupled with lucrative opportunities lured many new
entrants into this industry. Most of the new entrants were
undercapitalized with little or no expertise in merchant banking.
These players could hardly afford to be discerning and started
offering their services to all and sundry clients. The market was
soon flooded with poor quality paper issued by companies of
dubious credentials. The huge losses suffered by investors in
these securities resulted in total loss of confidence in the market.
Most of the subsequent issues started failing and companies
started deferring their plans to access primary markets. Lack of
business resulted in a major shake out in the industry. Most of
the small firms exited from the business. Many foreign
investment banks started entering Indian markets. These firms
had a huge capital base, global distribution capacity and
expertise. However, they were new to Indian markets and lacked
local penetration. Many of the top rung Indian merchant banks,
who had string domestic base, started entering into joint
ventures with the foreign banks. This energy resulted in
synergies as their individual strength complemented each other.
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SCOPE
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Development of debt markets:
Corporate restructuring:
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4. Confidence of the people, traders, buyers, marketers, business
houses, financial institutions etc
5. The economic environment of the outside world.
6. Competition among the existing players and the upcoming
entrant
ENVIRONMENTAL SCANNING
PEST ANALYSIS OF INDIAN INVESTMENT BANKING
INDUSTRY
1) Dollar $ Appreciation.
2) Frequent Fluctuation in
Economic Market.
3) Emergent market
1) Education:- Financial
Social Knowledge
2) Working Age Population
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1) Internet Backbone for
Technological knowledgeable Investors.
2) Booming Software Industry
for the ease of the Investor.
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SWOT ANALYSIS
Strengths: -
Weaknesses:
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Opportunities: -
Threats: -
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RESEARCH METHODOLOGY
Problem Definition:
Type of Research:
DESCRIPTIVE RESEARCH
Surveys & fact-finding enquiries
Try to discover causes
QUALITATIVE RESEARCH
Only PRIMARY DATA is used. Primary data are those which are
collected fresh and for the first time and thus happen to be
original character.
Sampling Technique
Sample Size: 10
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Functional Areas of Investment Banking
Investment
Banking
Acceptanc
e of
Responde
nts
Res Res Resp. Resp. Resp. Resp. Resp. Resp. Resp. Resp.
p. 1 p. 2 3 4 5 6 7 8 9 10
Tradin
g
Private
Equity
Adviso
Investm ry
ent Servic
Banking es
Project
Financ
e
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BCG Matrix:
It Involves people those who are dealing with the Different Financial
Areas.
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Awareness Total
among
Responden
ts
Res Res Res Res
Res Res Res Res Resp. Resp. p. p. p. p.
p. 1 p. 2 p. 3 p. 4 5 6 7 8 9 10
Tradin 9
g
Private 7
Equity
Adviso 8
Investm ry
ent Servic
Banking es
Project 7
Financ
e
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Following is the list of those Investment Banks which are
providing services to Respondents:
a) Kotak Securities
b) Reliance Money
c) ICICI Bank
d) ICICI Securities
e) SBI Capital &
f) HSBC
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