investmentbanking-130715225937-phpapp02
TRANSCRIPT
-
8/10/2019 investmentbanking-130715225937-phpapp02
1/58
Investment Banking
I NTRODUCTION
Investment Banking as the term suggests, is concerned with the primary
function of assisting the capital market in its function of capital market
intermediation, i.e. the movement of financial resources from those who
have them means investors, to those who need to make use of them
means issuer for generating profit. Banking & financial institutions on the
one hand & capital market on the other hand are two broad Platforms of
institutional intermediation for capital flows in the economy. herefore, it
could be inferred that investment banks are those institutions that are the
counterparts of banks in the capital market in the function of
intermediation in resources allocation. Investment banks carried on
various activities it helps companies and governments and their agencies
to raise money by issuing and selling securities in the primary market.
hey assist public and private corporations in raising funds in the capital
markets both e!uity and debt, as well as in providing strategic advisoryservices for e"pansion ac!uisitions, mergers and other types of financial
transactions.
Investment banking is much wider term than merchant banking as it
implies significant fund based e"posure to the capital market.
Internationally, investment banking have progressed both in fund based &
fee based segments of industry. In India, the dependence is heavily onmerchant banking, more particularly with issue management &
underwriting. #owever downturn in primary market has forced merchant
banks to diversify & become full fledged investment banks. $ver the
decades, backed by evolution & also fuelled by recent technological
developments, investment banking has transformed repeatedly to suit the
needs of the finance community & thus become one of the vibrant &
e"citing segments of financial services. he future for investment banks
%
-
8/10/2019 investmentbanking-130715225937-phpapp02
2/58
Investment Banking
is bright with scope for merchant banks to convert themselves into
investment banks. uch of the investment banking in its present form,
thus owes its origins to the financial market in '.(.) due to which,
)merican investment banks have been leader in the )merican & *uro
market as well. herefore, the term investment banking can be said to
be )merican origin. heir counterparts in '.+ were termed as merchant
banks since they had confined themselves to capital market
intermediation until the '.+ & *uropean markets & e"tended the scope
of such businesses.
-
8/10/2019 investmentbanking-130715225937-phpapp02
3/58
Investment Banking
TYPES OF PLAYERS IN INVESTMENT BANKING
Full-Service Firms- hese are type of investment banks who have
significant presence in all areas like underwriting, distribution, &),
brokerage, structured instruments, asset management etc. hey are all
rounder -f the game.
Cmmerci!l B!"#s /ommercial Banks operating through 0(ection -1
subsidiaries referring to the subsidiaries formed under section - of the
2lass (teagall )ct which were allowed to carry on limited investment
banking services.
Bu$i%ue Firms-hese are the type of players which specialist in
particular areas of investment banking.
Br#er!&e Firms- hese firms offers only trading services to retail &
institutional clients. hey have huge investor base which is also used by
underwriters to place issues.
Asse$ M!"!&eme"$ Firms- hese firms offer on investment services.
his includes activities like fund management, wealth management, cash
management, portfolio management depending on the type of investors,
tenure of corpus, purpose of investments, type of instrument invested in
etc.
3
-
8/10/2019 investmentbanking-130715225937-phpapp02
4/58
Investment Banking
STRUCTURE OF INDIAN INVESTMENT BANKING INDUSTRY
Investment banking in India has evolved in its own characteristic
structure over the years both due to business realities & the regulatory
regime.
$n the regulatory front, the Indian regulatory regime does not allow all
investment banking functions to be performed under the entity for two
reasons
4a o prevent e"cessive e"posure to business risk under the one entity.
4b o prescribe & monitor capital ade!uacy & risk management
mechanisms.
herefore bankruptcy remoteness is the key feature in structuring the
business lines of an investment bank so hat the risk & rewards are defined
for the investors who provide resources to the investment banks.
In addition, the capital ade!uacy re!uirements & leveraging capability
for each business have been prescribed differently under relevant
provisions of law.
herefore, Indian investment banks structure their segments in different
corporate entities to able to meet regulatory norms. 5or e.g. it is desirable
to have merchant banking in separate company as it re!uires a separate
merchant banking license from the (*BI. #owever, since banks are
sub6ect to the Banking 7egulation )ct, they cannot perform investment
banking to a large e"tent on the same balance sheet. )sset management
business in the form of mutual fund re!uires a threetier structure under
the (*BI regulations. *!uity research should be independent of the
merchant banking business so as to avoid the kind of conflict of interest.
(tock broking has to be separated into a different company as it re!uires a
stock e"change membership apart from (*BI registration.
8
-
8/10/2019 investmentbanking-130715225937-phpapp02
5/58
Investment Banking
he Indian investment banking industry has a heterogeneous structure.
he bigger investment banks have several group entities in which the
core & non core business segments are distributed. $thers have either
one or more entities depending upon the activity profile. he
heterogeneous & fragmented structure even if Indian investment banks
are classified on the basis of their activity profile. (ome of such as
(BI,I9BI, I/I/I, I: & 5(, +otak ahindra, /itibank & other offer
almost whole of investment banking services permitted in India. )mong
these, the long term financial institutions transforming themselves into
full service universal banks. hey also have full service investment
banking under their fold. $ther entities such as ;B5/s or subsidiary of
public sector banks mainly offer merchant banking & corporate advisory
services. here are also several others who are providing only corporate
advisory services but prefer to hold merchant banking or underwriting.
Presently, there are no global Indian investment banks although there is
a number of investment banks in India that have some overseas presence
to serve Indian issuers & their investors. )t the middle level are several
niche players including the merchant banking subsidiaries of some public
sectors banks. (ome of these subsidiaries have been either shut down or
sold off in the wake of the securities scams.
#owever certain banks such as /anara Bank & Pun6ab ;ational Bank
have had successful merchant banking activities. )mong the middle level
players are also merchant banks structured as non banking financial
services companies such as 7abo India 5inance :td., )lpic 5inance etc.
here are also in the middle level, some pure advisory firms such as
:a
-
8/10/2019 investmentbanking-130715225937-phpapp02
6/58
Investment Banking
POTENTIAL FOR INVESTMENT BANKING IN INDIA
he bane of Indian capital market today is lack of investor confidence.
his is reflected in the poor performance of both primary & secondary
markets. he causes for e"isting situation are many but primarily arise on
account of lack of li!uidity, unscrupulous issuers & merchant bankers &
poor or unappraised issues. Investment banking can solve this problem
because investor would be dealing with reputed investment banker in the
primary market rather than unknown issuers. he investment banks
whatever be their issue management techni!ues have their own capital on
hold. he issues are likely to be properly appraised & priced & sponsors
on $/*I have a two year lockin period. (imilarly investment banks
would hold the issues until market conditions are appropriate for issue,
thus reducing the risk e"posure of investors in gestation for issue.
oreover, the price of reissue will be a better indicator of issues
performance. Investment banks make the primary market subscription. In
sum, the !uality of pricing, appraisal, & primary market functions will
improve resulting in substantial improvement in investor confidence.
(ince the investment banker lends its name to the issue it will imply an
issue investors can trust. Investment bankers may gradually replace
merchant bankers in India.
?
-
8/10/2019 investmentbanking-130715225937-phpapp02
7/58
Investment Banking
SERVICE PORTFOLIO OF INVESTMENT BANKS
Investment banks handle significant fundbased business of their own in
capital market along with nonfund service portfolio which is offered to
clients. )ll this activities are segmented across three broad platforms @
e!uity market activity, debt market activity & mergers & ac!uisition
activity. Investment banks differ in the way they conduct their activities.
hese differences may arise due to their evolution, strategies & the way
the strategies are implemented. $ther factors that can influence
investment banking operations are as followsA
ide & narrow geographical presence like global & local firms.
*"tent of integration between the activities.
Inter relationships between activities of relates industries. *.g. )s
those between commercial banks & investment banking industries.
he activities of an investment banks depend upon the service provided.
he services provided by an investment bank can be broadly given
belowC
D
-
8/10/2019 investmentbanking-130715225937-phpapp02
8/58
Investment Banking
CORE SERVICE PORTFOLIO
;on 5und Based 5und Based
erchant Banking (ervice for
anagement of public offers of e!uity
& debt instruments.
Buy back offers.
Bookrunning
)dvisory & transaction service in
Pro6ect financing,
(yndicate loan
Eenture capital
Private e!uity
Private placements of e!uity & debt
Business advisory & structuring
5inancial restructuring
/orporate reorgani
-
8/10/2019 investmentbanking-130715225937-phpapp02
9/58
Investment Banking
Issue ' securi$ies( u")er*ri$i"& + merc,!"$ !"#i"&
Investment banks play a vital role in primary market. hey are
responsible for finding investors for initial public offering of securities in
primary market. By bringing the buyers & sellers together, they create a
market. (uch sales can take the form of best offers or agency
arrangement. Best offer activity is resorted to in the case of either new or
small companies in whose case of either new or small companies in
whose case underwriting would be risky or established & popular
companies whose issues are enthusiastically received. Investment bankersmay also help as a finder for private placement of securities with
institutions. hey also purchase new issues from security issuers &
arrange for their resale to the investing public. Investment bankers buy
the new issue at an agreed price & hope to resell it at a higher price. In
this capacity they are said to underwriter, or guarantee, an issue. ) group
of investment bankers 6oin together to underwriting syndicate. he
commission received by the investment bankers consist of differential or
spread between purchase & resale prices. he underwriting risk would be
that the issue may not attract buyer at positive differential. Investment
banks put its effort in managing & placement of an issue. Investment
banks helps in issue by helping in deciding type of security, si
-
8/10/2019 investmentbanking-130715225937-phpapp02
10/58
Investment Banking
in '(). (*BI vide its guidelines dated une %%, %HH introduced free
pricing of securities in public offers for the first time in India. he
purpose of this law is to re!uire security issuers to fully disclose all
information that affects the value of their securities. $ver the last ten
years, there have been two distinct phases of primary market boom the
first between %HH%HH? & the second between %HHF--%. he third
wave of the primary market issuers could be shape up in near future. his
market is very closely regulated by (*BI. In the days when the public
offers market is very vibrant, this area of service forms the main activity
for investment banks. In the past few years, through public offers have
been very few, the private placement market, especially in the debt
segment have been very active & has served as an important source of
funds for prime rated corporate. $nce the private placement markets also
come under regulatory stipulations, investment banks would have a wider
role to play in such issuances.
Mer&ers + Ac%uisi$i"s A)visr.
he merger & ac!uisitions industry was pretty nascent in India prior to
%HH8 & continues to be tiny compared to the global scale transactions.
#owever, two main factors that given below given a big push to this
industry areA
he forces of liberali
-
8/10/2019 investmentbanking-130715225937-phpapp02
11/58
Investment Banking
&), other valid merchant banking licences from (*BI also manage the
open offers arising out of such corporate events.
he investment bankers play the role of an advisor in &) deal. he
financing capability of the investment banks is beginning to play a crucialrole in securing the goal. hose firms that have networks with banks &
other financial institutions & thereby can provide finance or have
necessary resources to finance the deal themselves a better chance of
success of deal. Investment banks thus helps in finding a buyerJseller, in
working out the terms of the transaction, financing the structure,
arranging bridge loans. It is necessary that the &) group keep a close
watch on the various industries, companies in order to identify the
potential &) candidate. (imilarly, close relationship with the securities
research people, traders also help to identify the companies vulnerable to
takeovers. he task of doing &) deals begins with analy
-
8/10/2019 investmentbanking-130715225937-phpapp02
12/58
Investment Banking
Asse$ m!"!&eme"$ services
his is a service provided by investment banks to local fund managers for
cross border settlement & administration. It involves receipt of dividends
& interest, subscribing to the right issues & ad6usting portfolio. )ssetmanagement is the unglamorous aspect of investment banking, the
prosaic bank office work of settling traders, making payments, keeping
records & such related tasks. Investment banks provide this service for a
fee to investors such as mutual funds, pension fund & insurance
companies, enabling fund managers to buy & sell securities at home &
abroad. It is a hitech, hivolume, low margin business, revolutioni
-
8/10/2019 investmentbanking-130715225937-phpapp02
13/58
Investment Banking
Sec")!r. m!r#e$ !c$ivi$ies
Investment banks also indulge in proprietary trading. (ome investment
banks have proprietary trading desks which take risk on of institutions
behalf, based on a view of economic & market perceptions &e"pectations. he trader in securities or derivatives for the account of the
firm itself rather than on behalf of its clients. Proprietary trader tends to
take decisions based on detailed technical & fundamental research,
analytic calculations & time series forecasting. he banks incur profit out
of the price movement in the market. (econdly, as a market maker the
trader investment banks take position in the market through purchase &
sale of e!uities, debt & other securities, e"ecute the customer orders &
manage the customers, institutions market risk. Investment banks
perform the following functionsA
he traders of investment banks help in making market. he traders
maintain a position in the stock that their firms has underwritten,
!uote the bid & ask prices & sell at those price. )dvise the salespeople, client & research analysts on the market
activity & pricing for different e!uity issues.
Put ma6or trades together by negotiating with the salespeople, client &
the other dealers.
anage the firms investment risks.
9evelop a sound knowledge about the markets, companies & the
industries.
he commonly traded securities by investment banks include the
sovereign securities, e!uities, money market instruments, investment
grade corporate debt, high yield debt, derivatives, mortgages, etc.
ost of the universal banks such as I/I/I & I9BI & +otak ahindra
have their broking & distribution firms in both the e!uity & debt
%3
-
8/10/2019 investmentbanking-130715225937-phpapp02
14/58
Investment Banking
segments of secondary market. In addition several other investment banks
such ad organ (tanley, 9(P errill :ynch have a strong presence in
this area of activity. In the past few years, the derivative segment has
been introduced in the Indian capital market & this provides an additional
avenue of speciali
-
8/10/2019 investmentbanking-130715225937-phpapp02
15/58
Investment Banking
S!les + Dis$riu$i"
In the present scenario, the financing needs are immense for both
corporates & governments, while the investment managers are constantly
on the lookout for optimal allocation of funds for optimal 7eturns. he
link between the two is filled by investment banks, in particular, by the
sales & 9istribution operations. (ales & 9istribution bring together the
primary issuers & secondary sellers with the buyer of the instruments.
hese could be e!uity, fi"ed income instruments.
In general, there could be two product categoriesA
Institutional sales group
7etail segment
Institutional segment
he salespersons at the investment banks have counterparts at the
institutions. hese counterparts are normally referred to as buy side
analysts or portfolio managers. If the investment banks analyst is
respected, they also act as sellside analyst, as a part of investment
decision.
7etail segment
Investment banks act as an advisor to his clients. #e is more multi
market oriented & can recommend stocks as well as bond unlike
specialists in the institutional product group. he success of a salesperson
reflects not 6ust in his selling abilities, but also his ability to fulfill client
e"pectation
%>
-
8/10/2019 investmentbanking-130715225937-phpapp02
16/58
Investment Banking
Rese!rc,
he research operations of an investment bank are concerned with
studying the economic trends, industry developments, & individual
companies stocks & providing proprietary investment advice to the
institutional clients, & to its sales & trading divisions. he research
division is also an important part of the underwriting process, both in
attracting the clients by their knowledge of clients industry & in
providing a critical link to the institutions that own the clients stocks once
the stocks is publicly traded. )n efficient research team provides aninformation advantage to the investment banks that can use it for inhouse
trading purpose & also can use for the benefit of their clients.
*!uity 7esearch
he *!uity 7esearch division of a securities house or investment bank
provides indepth stock market analysis & a broad perspective &
knowledge regarding the industry trends. hey also provide an insight
into the including valuation of !uoted companies & evaluation of
companies prospects. he research evaluations usually includeA
Industry evaluations, which analy
-
8/10/2019 investmentbanking-130715225937-phpapp02
17/58
Investment Banking
5i"edincome research
he fi"ed income research division provides research focus on the
instruments like corporate debt including investment grade debt, high
yield debt, corporate & portfolio strategy derivatives, mortgage backed
securities, asset backed securities. 5i"ed income research is considerably
more !uantitative than e!uity research. he analysts in this division
assess the fairness of the spreads between the fi"ed income instruments
of different maturities & different risk classes & makes trading
recommendations based on the deviations from the fair spreads, estimatethe value of the options in the mortgages & mortgage backed products.
he fi"ed income research groups work closely with the clients in order
to identify their needs & work to provide customi
-
8/10/2019 investmentbanking-130715225937-phpapp02
18/58
Investment Banking
/e!l$, m!"!&eme"$ services
ealth management services also called as private banking. any
reputed investment banks nurture a separate segment to manage the
portfolio of high networth individuals, households, trust, & other type of
non institutional investors. his can be structured either as a pure
advisory services wherein the investment manager does not have any
access to the funds or as a fund management service wherein the
investment manager is given charge of funds. In the former case, it
becomes it becomes a nondiscretionary portfolio & in the latter case, itbecomes a discretionary portfolio. (uch activity is regulated under the
guidelines. In other case, wealth management may be restricted to a
research based activity wherein in the investors is a provided good
investment recommendation from time to time.
Cr0r!$e A)visr.
Investment banks in India also have large practice in corporate advisory
services relating to pro6ect financing, corporate restructuring through
e!uity repurchase including management of buyback offers under section
DD) of the /ompanies )ct,%H>? raising private e!uity, structuring 6oint
ventures & strategic partnerships & other such value added speciali
-
8/10/2019 investmentbanking-130715225937-phpapp02
19/58
Investment Banking
REGULATORY FRAME/ORK FOR INVESTMENT BANKING
Investment banking in India is regulated in its various facets under
separate legislations or guidance issued under statute. he regulatory
powers are also distributed between different regulators depending upon
the constitutions & status of the investment bank. Pure investment banks
which do not presence in the lending or banking business are governed
primarily by the capital market regulator i.e. (*BI. #owever universal
banks & ;B5/ investment banks are regulated primarily by the 7BI Hin
their core business of banking or lending & so far as the investment
banking segment is concerned, they are also regulated by (*BI. )n
overview of the regulatory framework is furnished belowA
%. )t the constitutional level, all investment banking companies
incorporated under the /ompanies )ct %H>? are governed by the
provision of the act.
. Investment banks that are incorporated unde8r a separate statute such
as the (BI or the I9BI are regulated by their respective statue. I9BI is
in the process of being converted into /ompanies )ct.
3. 'niversal Banks are regulated by 7BI of India under the 7BI )ct%H38 & the Banking 7egulation )ct which put restrictions on the
investment banking e"posures to be taken by the banks. he 7BI has
rela"ed the e"posure limits for merchant banking subsidiaries of the
commercial banks. ill now, such companies were restricting their
e"posure to a single entity through the underwriting business & other
fund based commitments such as standby facilities etc. to >K of their
net owned funds. herefore these companies are now on par with
%H
-
8/10/2019 investmentbanking-130715225937-phpapp02
20/58
Investment Banking
other investment banks which can do so upto - times their net owned
fund.
8. Investment banking companies that are constituted as nonbanking
financial companies are regulated operationally by the 7BI under
/hapter IIIB section 8># & 8>LB of the 7BI )ct, %H38. 'nder these
sections 7BI is empowered to issue directions in the area of resources
mobili. 5unctionally, different aspects of investment banking are regulated
under the securities & *"change Board of India )ct, %HH & the
guidelines & regulations issued under. hese are listed belowA
erchant banking business consisting of management of public offers
is a licensed & regulated activity under the (*BI )ct 4erchant
BankersG, %HH.
'nderwriting business is regulated under the (*BI 4underwritersG
7ules & 7egulations, %HH3.
he activity of secondary market operations including stock broking
are regulated under the relevant bylaw of the stock e"change & the
(*BI 4stock broker & sub brokerG 7ules & 7egulations, %HH. Besides
for restricting unethical trading practices, (*BI has issued the (*BI
4Prohibition of fraudulent & unfair trade practices relating to securities
marketsG 7egulations %HH>& also (*BI prohibited insider trading
under regulations, %HH.
-
-
8/10/2019 investmentbanking-130715225937-phpapp02
21/58
Investment Banking
he business of asset management as mutual funds is regulated under
the (*BI 4utual 5undG 7egulations, %HH?.
he business of portfolio management is regulated under the (*BI
4Portfolio mangersG 7ules & 7egulations, %HH3.
he business of venture capital & private e!uity by such funds that are
incorporated in India is regulated by the (*BI4venture capitalG
7egulations,%HH? & by those that are incorporated outside India is
regulated under the (*BI 4 5oreign venture capital fundsG
7egulations,---.
he business of institutional investing by foreign investment banks &
other investors in Indian (econdary markets is governed by the (*BI
45oreign Institutional InvestorsG 7egulations %HH>.
?. Investments banks that are set up in India with foreign direct
investment either as 6oint ventures with Indian partners or as fully
owned subsidiaries of the foreign entities are governed in respect of
the foreign investment by the 5oreign *"change anagement )ct,
%HHH& 5oreign *"change anagement 4ransfer or issue of a person
resident outside IndiaG 7egulations --- issued there under as
amended from time to time through circulars issued by the 7BI.
D. )part from the above specific regulations relating to investment
banking, investment banks are also governed by the other laws
applicable to all other underwriting support on government securities
issue & participate in auctions held by the 7BI.
%
-
8/10/2019 investmentbanking-130715225937-phpapp02
22/58
Investment Banking
SKILLS SUGGESTED FOR INVESTMENT BANKERS
Tec,"ic!l S#ill
Ac!)emic B!c#&ru")-In the early days of investment banking, not
much importance was attached to academic background. oday, the
business has become very complicated and the skill re!uirements have
multiplied. /onse!uently, investment banks find it important to recruit
people with the right academic credentials. ypically, for most of the
important 6obs, an B) is a must. Investment banks rely heavily on
campus recruitments
C"ce0$u!l Su")"ess-$ne of the ma6or benefits for a professional
in an investment bank is the learning associated with work. he
financial skills of an e"pert are tested to the core while handling a
complicated deal. /omprehensive and indepth knowledge of financial
and business concepts are essential to sustain business. ultiple
relationships between various factors render decisionmaking difficult.
5inancial solutions can be provided to the clients only when the
advisor is competent to understand all or at least a ma6ority of them.
Before practical solutions emerge, the tools for decisionmaking will
give greater choice to the solution provider. ) strong grounding in
theory and concepts facilitates this.
Pr)uc$ S0eci!li1!$i"- $ne way to speciali
-
8/10/2019 investmentbanking-130715225937-phpapp02
23/58
Investment Banking
would suit their risk profile should be identified. he clients will also
feel at home while dealing with a product specialist.
Le&!l K"*le)&e-hile clear cut guidelines can be issued to the
traders regarding their market related activities that are governed by
the law, the comple"ity multiplies for an &) deal. he regulators
guidelines have to be strictly followed, even while envisaging a
combination. :egal knowledge is also important for structuring such
deals, which will help identify the constraints associated with
proposed solution. he situation gets more intense when the deal is acrossborder &) proposal. )part from the knowledge of the inland
laws, foreign laws also have to be considered. )ny regulation by the
foreign government can make an otherwise desirable deal, unviable.
K"*le)&e ' C!0i$!l M!r#e$s !") Fu"c$i"i"&- ore than any
other industry, it is the investment banking industry that has a direct
bearing on the way capital markets function. )ny changes in thecapital market regulations affect the brokerage side of the business,
along with the trade clearing and settlement houses. he trading
personnel should be conversant with the regulations, guidelines,
procedural formalities and actual trade e"ecution processes involved
in capital market. *.g. rading system involves a lot of additional
skills than online trading. #e has to be conversant with the codes,symbols and conventions followed by the market. Luick signaling and
accurate interpretation are of utmost significance. )ny mistake in
these would lead to faulty e"ecution of orders and might entail
additional costs to the firm in correcting the errors.
K"*le)&e ' Re&ul!$r. B)ies i"vlve) i" $,e V!rius
O0er!$i"s-It is necessary for an investment banker to be aware ofall the regulatory bodies that govern the activities in which heJshe is
3
-
8/10/2019 investmentbanking-130715225937-phpapp02
24/58
Investment Banking
involved. ) thorough knowledge of all such bodies is absolutely
essential to perform e"traordinarily. In India, the (*BI & central bank
acts as a watchdog and regulator of market related activities.
K"*le)&e ' I"$er"!$i"!l Busi"ess Sce"!ri !") Ec"micTre")s2-hough a researcher is primarily involved in economic and
business cycle studies, it is the duty of all the investment bankers to
have a general overview of these affairs. (alespersons, who also act as
financial consultantsJadvisors, should essentially be aware with
economic and business cycles, lest they lose the respect and trust of
the client. he re!uirement for global perspective and international
e"posure is becoming increasingly important. he firm should offer
services across the national borders to the corporate clients and
informed services are possible only when the employee is well
e!uipped with international business information.
K"*le)&e ' S'$*!re Tls( Devel0me"$s i" $,e Fiel) 'I"'rm!$i" Tec,"l&.-$ne of the most important technical skills
is the usage of computers, tools and internet technologies. arketing,
brokerage, research and capital mobili
-
8/10/2019 investmentbanking-130715225937-phpapp02
25/58
Investment Banking
Cmmu"ic!$i" S#ills
Aili$. $ C!$er $ $,e Au)ie"ce Accr)i"& $ i$s
A*!re"ess Levels-/ommunication skills include both the means of
communication M written and oral. #owever, the audiences vary
e"tensively, and hence, the re!uisite communication skills also differ
widely. ) marketer handling individual investors will necessarily have
to keep the content very simple and e"press t in laymans terms. 'sage
of financial terms & 6argons will not fetch results. /ash flows, the
characteristics of the instruments & the risk class to which the
investment belongs to must be e"plained in simple & easily
understandable terms.
Ne&$i!$i" S#ills ;egotiation skills is important at a variety of
places. Institutional clients have to be convinced about the prospects
of the investments that are solicited by the firm. Investors in
syndicated debt must be satisfied with the payment streams and
interest rate terms. &) transactions are the toughest assignments for
negotiations. *ven a friendly transaction would be difficult if not for
patient and mutually negotiations. he common issues that pertain to
negotiation are M terms of offer, offer price, post merger integration,
organi
-
8/10/2019 investmentbanking-130715225937-phpapp02
26/58
Investment Banking
clients & team members. It is essential when solutions are to be
identified for comple" problem. Innovations & creativity are re!uired
structure deals.
O$,er S#ills
M!r#e$i"& S#ills- he marketing skills would be an
application of skills mentioned above. $ne of the important marketing
skill would be relationship management. 'nlike most other industries
where relationship plays a facilitating role in conducting business, it is
fundamental issue in the investment banking industry. )n attitude for
creating, establishing & maintaining relationships, during boom &down period, is of utmost importance in getting mandates.
I"$er-Pers"!l S#ills-Interpersonal skills are basically blended from
communication skills, and personality traits. hey include interactions
with superiors, subordinates, colleagues, clients, competitors, team
members and even politicians and public office bearers. Interpersonal
skills come to the fore during team e"ercises where diplomacy and
manners become essential. eam e"ercises can also include dealing
with members from other departments or even with other firms. (uch
situations call for greater application of team skills and an element of
mutual respect towards each other.
Ne$*r#i"& S#ills-;etworking refers to the process of developing a
web of contacts and ac!uaintances. (ome of the special attributes
re!uired to develop networking abilities would includeA
N +nowledge of human psychologyO
N Presence of mind to apply the appropriate skills as situation demandsO
N )pproaching through proper channels that would lend credibility
respectability to contactsO
N Persuasion skillsO
?
-
8/10/2019 investmentbanking-130715225937-phpapp02
27/58
Investment Banking
N #ighest standards of professionalism.
ROLE OF INVESTMENT BANKERS IN DEVELOPING AN
ECONOMY3
InvestmentBankers
Banks &
5inancial
InvestmentInstitutions
4financial
economyG
/apital arket J
oney arket
4financial
economyG
5oreign
*"change arket
4financial
economyG
7eal *state J
2old etc 4realeconomyG
/ommodity
futures arket
4financialeconomyG
Business activity
Production of
goods andservices 4real
economyG
Investors4generate
savingsG
D
-
8/10/2019 investmentbanking-130715225937-phpapp02
28/58
Investment Banking
E4PLANATION
%G InvestorsA Investors are the persons who generate savings. he
investors who generate savings will definitely like to earn something
out of it rather keeping the funds idol. (o the !uestion of investment
arises and with the investment risks arises. (o for proper and safe
deployment of funds investment bankers help them in the process of
investing their funds.
G 7ole of investment bankersA he investment bankers act as an
intermediary between the investors and capital market which consists
of primary market and secondary market. he investment bankers with
their intense research guide them to invest their money in banksJ5I,
/apital and money market, foreign e"change market, commodity
market, real estateJgold etc. Proper deployment of funds will help the
investors to earn good returns with safety of their initial invested
funds.
3G Business )ctivityA )ll these investments from the investors will lead
to business activity in different sectors. he funds deployed by the
investors will be utili
-
8/10/2019 investmentbanking-130715225937-phpapp02
29/58
Investment Banking
profits for the user of the funds because of utiliGBest Broker In India
he company has a fullfledged research division involved in acro
*conomic studies, (crotal research and /ompany (pecific *!uity
7esearch combined with a strong and well networked sales force which
helps deliver current and up to date market information and news.
+otak (ecurities :td is also a depository participant with ;ational
(ecurities 9epository :imited 4;(9:G and /entral 9epository (ervices
:imited 4/9(:G, providing dual benefit services wherein the investors
can use the brokerage services of the company for e"ecuting the
transactions and the depository services for settling them.
+otak (ecurities has % branches servicing more than %, D-,---
customers and coverage of %FD cities. +otaksecurities.com, the online
division of +otak (ecurities :imited offers Internet Broking services and
also online IP$ and utual 5und Investments. +otak (ecurities :imited
manages assets over >-- crores of )ssets under anagement 4)'G
H
-
8/10/2019 investmentbanking-130715225937-phpapp02
30/58
Investment Banking
.he portfolio anagement (ervices provide top class service, catering to
the high end of the market. Portfolio anagement from +otak (ecurities
comes as an answer to those who would like to grow e"ponentially on the
crest of the stock market, with the backing of an e"pert.
AREA OF BUSINESS FOR KOTAK SECURITIES
+otak (ecurities has five main areas of businessA
I"s$i$u$i"!l Busi"ess
his division primarily covers secondary market broking. It caters to the
needs of foreign and Indian institutional investors in Indian e!uities 4both
local shares and 297sG. he division also incorporates a comprehensive
research cell with sectoral analysts who cover all the ma6or areas of the
Indian economy.
Priv!$e Clie"$ Services
Private /lient (ervices 4P/(G is a special investment division for #igh
;etworth individuals, retail investors, ;on7esident Indian investors,
trusts, corporates and banks. he investment product range at P/( is
among the widest in the country and covers debt and e!uity, mutual funds
and specialised structured investment products.
Clie"$ M"e. M!"!&eme"$
his division provides professional portfolio management services to
high networth individuals, retail investors, and corporates. Its e"pertise
in research and stock broking gives the /ompany the right perspective
from which to provide its clients with investment advisory services.
Re$!il )is$riu$i" ' 'i"!"ci!l 0r)uc$s
3-
-
8/10/2019 investmentbanking-130715225937-phpapp02
31/58
Investment Banking
+otak (ecurities has a comprehensive retail distribution network,
comprising appro"imately D--- agents, %3 branches and over -
franchisees across India. his network is used for the distribution and
placement of a range of financial products that includes company fi"ed
deposits, mutual funds, Initial Public $fferings, secondary debt and
e!uity and small savings schemes.
De0si$r. Services
+otak (ecurities is a depository participant with the ;ational (ecurities
9epository :imited and /entral 9epository (ervices 4IndiaG :imited for
trading and settlement of demateriali
-
8/10/2019 investmentbanking-130715225937-phpapp02
32/58
Investment Banking
PRODUCTS OF KOTAK SECURITIES
$nce you invest with +otak (ecurities, you can en6oy access to a wide
range of products and services to help you make the most of your
investments.
E!s. E%ui$.A ant your capital to appreciate fastQ Invest in *asy *!uity.
aG (ms )lerts
bG /all & rade
cG op 2ainers and :osers notification
dG (uper multiple
eG Portfolio racker
E!s. Deriv!$ivesA he higher your risk, the greater the returns on your
investments.
aG Put /all ratios
bG op value traded
cG $pen interest
dG (tock futureJ(tock options
E!s. IPO2Invest early for greater returns.
aG 5orthcoming issues
bG ;ew listings
cG /all & rade
dG IP$ news
eG $pen issues
3
-
8/10/2019 investmentbanking-130715225937-phpapp02
33/58
Investment Banking
E!s. Mu$u!l Fu")2 :ooking to diversify your riskQ Invest in *asy
utual 5und.
aG 5ind out ;)E of a (cheme
bG Eiew (cheme details
cG utual fund ;ews
dG /ompare (chemes
eG y portfolio
E!s. I"sur!"ce2(ecure your future and your familys. heres more to
insurance than 6ust security.
aG #ow does the plan workQ
bG )dvantages of the plans
cG *ligibility
dG $ther Benefits
33
-
8/10/2019 investmentbanking-130715225937-phpapp02
34/58
Investment Banking
ACCOUNT TYPES
he first !uestion in an individuals mind where to open an account
ant to start investingQ $pen an investing account with +$)+
(*/'7II*( and begin right away. hether you are a beginner or an
e"pert trader, they have different accounts to suit your needsA
K$!# G!$e*!. Accu"$2
If you are new to trading, +otak (ecurities opens the gateway to a world
of investing opportunities for you online and onphone. heir indepth
research will guide you in making smart investment decisions. $pen the
+otak (ecurities 2ateway )ccount and get started.
Yur Be"e'i$s2
+otak (ecurities +nowledge /enter that helps you learns more
about stock markets and investments.
*n6oy higher returns by investing early through *asy IP$.
7esearch 7eports on the economy, select industries and
companies help you make informed investment decisions while
dealing in *asy *!uity.
7esearch advice via +otak (ecurities (( alerts, so you dont
miss out on important buying and selling opportunities.
Buy and sell stocks on phone using /all & rade.
)ccess to %8 topperforming mutual funds through *asy utual
5und.
38
-
8/10/2019 investmentbanking-130715225937-phpapp02
35/58
Investment Banking
5ree news and market updates.
*"posure of upto %> times your initial margin on select stocks
with (uper ultiple.
5* $ !c$iv!$e6
=ou can activate +otak (ecurities 2ateway with any amount between 7s
-,--- to >, --,---J as margin. his can be in form of cash deposit or the
value of the shares you buy.
O0e" .ur !ccu"$2
(tep %A o open your account, simply download and print an application
form, fill it in and post it along with the essential documents to the
address as mentioned in the form.
=ou can call them and they will have their representative meet you and
help you open the account
=ou can also email them at gatewayRkotaksecurities.com. heir
representative will get in touch with you.
(tep A hey will inform you as soon as your account is activated, and
you can start trading instantly
his procedure is common for all accounts.
3>
-
8/10/2019 investmentbanking-130715225937-phpapp02
36/58
Investment Banking
K$!# V!lue Accu"$2
Becoming a wise investor re!uires a good deal of research and education.
=ou must learn not only how stocks and mutual funds work, but also to
make your own investment decisions. he +otak (ecurities Ealue
)ccount is specially e!uipped to make investing simpler for you.
Yur e"e'i$s2
+otak (ecurities +nowledge /enter that helps you learn more
about stock markets and investments.
heir 7esearch 7eports on the economy, select industries and
companies help you make informed investment decisions while
dealing in *asy *!uity.
Buy and sell stocks on phone using /all & rade.
Invest in IP$s with *asy IP$.
)ccess to %8 topperforming mutual funds through *asy utual
5unds.
7esearch advice via +otak (ecurities (( alerts, so you dont
miss out on important market movements.
5ree news and market updates.
he facility to trade in amounts > times greater than your
capital.
:ower delayed payment interest.
)ccess to +.*.). 9esktop specialised financial software that
makes trading easier.
3?
-
8/10/2019 investmentbanking-130715225937-phpapp02
37/58
Investment Banking
*"posure of upto %> times your initial margin on select stocks
with (uper ultiple
5* $ !c$iv!$e6
=ou can activate +otak (ecurities Ealue with any amount between 7s.
>, --,---J and 7s. %-, --,---J as margin. his can be in form of cash
deposit or the value of the shares you would have currently.
3D
-
8/10/2019 investmentbanking-130715225937-phpapp02
38/58
Investment Banking
K$!# Privile&e Circle Accu"$
+otak (ecurities offer you nothing but the best. )t +otak (ecurities, they
make sure you get to en6oy premier and topline trading services with
+otak (ecurities Privilege /ircle
Yur e"e'i$s2
) dedicated Privilege /ircle customer service desk offers you
assistance in opening accounts, handling daytoday problems,
and more.
Independent market e"pertise and support through a dedicated
relationship manager.
Place orders phone through /all & rade.
)ccess to *asy IP$ and %8 topperforming mutual funds
through *asy utual 5unds.
heir 7esearch 7eports on the economy, select industries and
companies.
7esearch advice via +otak (ecurities (( alerts, so you dont
miss out on important market movements.
? times e"posure on the margin.
)ccess to +.*.). Premium an e"clusive premium analysis
tool with > Indicators for echnical )nalysis, 9erivative
/hains, ultiple atchlists, and more.
:owest delayed payment interest.
3F
-
8/10/2019 investmentbanking-130715225937-phpapp02
39/58
Investment Banking
*"posure of upto %> times your initial margin on select stocks
with (uper ultiple
5* $ !c$iv!$e6
=ou can activate +otak (ecurities Privilege /ircle with any amount more
than 7s. %-, --,---J as margin, by way of cash or stock
K$!# 5i&, Tr!)er Accu"$2
5or daily traders, they have the +otak (ecurities #igh rader e"posure
an account specially designed for intraday traders. his is an )uto
(!uare $ff product where you can en6oy the benefits of intraday trading.
)ll open orders will be automatically s!uared off at 3.%- pm.
Yur e"e'i$s2
? times e"posure on the margin.
)ccess to +.*.). 9esktop specialised financial software that
makes trading easier.
)ccess to +*) Premium an e"clusive analysis tool with >
Indicators for echnical )nalysis, 9erivative /hains, ultiple
atchlists, and more.
Intra day calls from our e"perts for a nominal fee.
heir 7esearch 7eports on the economy, select industries andcompanies.
7esearch advice via +otak (ecurities (( alerts, so you dont
miss out on important market movements.
5ree news and market updates.
)ccess to %8 topperforming mutual funds through *asy utual
5unds.
Place a paperfree order for IP$, through *asy IP$.
3H
-
8/10/2019 investmentbanking-130715225937-phpapp02
40/58
Investment Banking
5* $ !c$iv!$e6
=ou can activate +otak (ecurities #igh rader with any amount less than
7s >, --,---J as margin, by way of cash or stock.
K$!# Free*!. Accu"$2
rading unlimitedS +otak (ecurities 5reeway enables you to trade asmany times as you like at a fi"ed brokerage. ust pay a fi"ed brokerage
of 7s. HHHJ a month and trade as many times as you want
Yur e"e'i$s2
8 times e"posure on the margin.
)ccess to +.*.). 9esktop specialised financial software that
makes trading easier.
Intra day calls from our e"perts for a nominal fee.
heir 7esearch 7eports on the economy, select industries and
sectors and companies.
7esearch advice via +otak (ecurities (( alerts, so you dont
miss out on important market movements.
5ree news and market updates.
)ccess to %8 topperforming mutual funds through *asy utual
5unds.
Place a paperfree order for IP$, through *asy IP$.
5* $ !c$iv!$e6
8-
-
8/10/2019 investmentbanking-130715225937-phpapp02
41/58
Investment Banking
=ou can activate +otak (ecurities 5reeway with any amount less than 7s.
%, >,---J as margin, by way of cash or stock.
PLANNING /IT5 KOTAK
hy you need to planQ
hen it comes to important life goals it is important to develop a
financial roadmap to move your goals forward and to help you make the
most of lifes changes.
=ou need to plan to protect yourself and your family against financial
risks. (ure, no financial planner can protect you from the risks you face in
life. But good financial planning can protect you from suffering the
financial loss that may result when any of those risks become reality.
(tep %A (ound financial planning can help you chart a clear course to your
retirement goals. (o no matter whether youre 6ust starting out or
approaching the end of your career, +otak (ecurities provides you with
comprehensive planning and support.
(tep A Plan ta"es as ongoing process and not a onetime event. 2ood
planning will increase your afterta" cash flows, and may mean greater
savings during ta" time.
(tep 3A ake your money work smarter and harder. 2et higher returns
from your investments. #eres how.
8%
-
8/10/2019 investmentbanking-130715225937-phpapp02
42/58
Investment Banking
(ay if you were to invest 7s. %--. a"saving schemes like Post $ffice
(chemes, utual 5unds and 2overnment Bonds are safe and longterm
avenues. 5i"ed 9eposits also give you a >.>KT interest, while the share
market brings you returns of %F.FFKU.
PORTFOLIO MANAGEMENT
hy Portfolio managementQ
)s you drive towards your ob6ective of creating wealth, you need to
employ the right investment vehicles, at the right time. 2iven the
unpredictable nature of e!uity markets, staying on course re!uires e"pert
maneuvering, time and effort.
hats where Portfolio anagement comes in. It gives your portfolio the
edge by skillfully sifting through available investment opportunities to
help you reduce risk and ma"imi
-
8/10/2019 investmentbanking-130715225937-phpapp02
43/58
Investment Banking
hrough !uarterly account performance statements, delivered to your
doorstep.
G )i&i$!l( s$!. u0)!$e)
hey email all your financial statements to you, doing away with the
hassle of paperwork.
/,e" i" )u$( 8us$ !s#
+$)+ (*/'7II*( have a dedicated website and a customer service
desk to address all your !ueries, anytime.
REASEARC5 OF KOTAK SECURITIES
K$!# Securi$ies Rese!rc, Ce"$er
elcome to the +otak (ecurities 7esearch /enter the special research
cell where some of Indias finest financial analysts bring you intensive
research reports on how the stock market is faring, when is the right time
to invest, when to e"ecute your order and more. 9epending on what kind
of investor you are, they bring you fundamental or basic research and
technical research. )s an investor with +otak (ecurities, you get access to
these research reports e"clusively. =ou get access to the following
reports.
I"$r!)!. c!lls2
hese calls are provided according to changing market situations. Be it
news, momentum or technical perspectivesO be updated with what our
e"perts advise you to do during the market hours.
S0eci!l Re0r$2
hese reports give you an in depth coverage on special events such as the
Budget 7eport, Luarterly results, 7BI /redit & onetary Policy,
onsoon 7eport and much more.
83
-
8/10/2019 investmentbanking-130715225937-phpapp02
44/58
Investment Banking
M!r#e$ Mr"i"&2
) technical view summari
-
8/10/2019 investmentbanking-130715225937-phpapp02
45/58
Investment Banking
Deriv!$ive Re0r$s2
=ou can view the put call ratio, the most active derivative contracts and
the top change in open interest. =ou can also get 5II (tatistics, the top
gainers and losers and the cost of carrying out various derivative
contracts.
Pr$'li A)vice2
=ou can avail the advice of our e"perts by simply writing an email to
them. hether it is on choosing a stock or sector or anything regarding
investments all your !ueries will be answered. If you need advise simply.
K$!# Securi$ies SMS Aler$s2
)nd last, but not the least, you can get these e"pert tips and
recommendations as (( on to your mobile phone.
K$!# Securi$ies Rese!rc, A)v!"$!&e2
/heck out the returns on investments that our clientele has en6oyed over
the past year.
MUTUAL FUND RESEARC5
Mu$u!l Fu") Rese!rc,
hen you decide to invest in a utual 5und, selecting from hundreds of
utual 5unds can get tough. ith utual 5und 7esearch, you can take
your pick easily from e!uitybased or debtbased funds, to growth funds
or dividendbased funds.
9uic# Rese!rc, 'r i"ves$me"$s
2et access to indepth research. $r
-
8/10/2019 investmentbanking-130715225937-phpapp02
46/58
Investment Banking
A"!l.se *i$, i"-)e0$, rese!rc,
2et independent research with reports, ratings, and rankings from e"pert
analystsO plus, insight into current analyst recommendations and their
historical performance.
M"i$r .ur i"ves$me"$s
2et breaking news and set alerts for your portfolio, and track
performance with watch lists
INVESTING /IT5 KOTAK SECURITIES
)t +otak (ecurities, this is precisely what they believe in. hey are
committed to make trade easy for you. hey understand your level of
e"pertise in trading and provide you solutions to fit your needs whether
you are a beginner, a seasoned investor or a professional trader. hey can
help you invest wisely while taking into account, the amount you wish to
invest. +otak (ecurities conducts research for all class of customers.
Be&i""ers
:ooking to invest but dont know where and howQ ondering whether
online trading would be a good and reliable way to investQ )t +otak
(ecurities, they make online investing really easy for you so you can
trade from the comfort of your home or office, or even while you are on
the move.
Se!s"e) I"ves$rs
2iven the volatile nature of the stock markets, you can never be really
sure of getting stable returns every time, from your investments. If you
have a family to look after, the need for planning your investments in the
long run becomes greater than ever. (o whatever youre life goals,
8?
-
8/10/2019 investmentbanking-130715225937-phpapp02
47/58
Investment Banking
investing wisely could make all the difference between a fortune gained
and an earning lost. +otak (ecurities, help you plan investments keeping
your future in mind.
Su0er Tr!)er
If the research for beginners and seasoned are taken care of by them,
super tradersMhaving a huge volume of transactions, who are dedicated
customers, research is conducted to ma"imi@
orstG
% 3
8D
YES NO
-
8/10/2019 investmentbanking-130715225937-phpapp02
48/58
Investment Banking
8 >
>G hich facility of +otak (ecurities do you appreciate the mostQ
*asy *!uity *asy
9erivatives *asy IP$
*asy utual 5und *asy
Insurance
?G #ow do you find the customer relationship management of +otakQ7ate it on the scale belowQ Between %> 4%@ 2ood, >@ orstG
% 3
8 >
DG #ow do you find follow up services of +otak securities in terms ofonthly reports and othersQ 7ate it on the scale below between %
>Q 4%@ 2ood, >@ orstG
% 3
8 >
FG )ny limitations to +otak (ecuritiesQ
8F
-
8/10/2019 investmentbanking-130715225937-phpapp02
49/58
Investment Banking
MARKET SURVEY RESULT FOR KOTAK SECURITIES3
%G )re you familiar with +otak (ecuritiesQ
otal ;o of Person =es 4KG ;o 4KG
>- H- %-
G 9o you have an account with +otak (ecuritiesQ If ;o, han please
(pecifyQ
otal ;o of Person +otak 4KG #95/ 4KG I/I/I 4KG $thers 4KG
8- 8- > - %>
8H
-
8/10/2019 investmentbanking-130715225937-phpapp02
50/58
Investment Banking
3G )re you satisfied with the services provided by +otak securitiesQ
otal ;o of Person =es 4KG ;o 4KG
8- ? 3F
8G #ow do you find the portfolio management services of +otak
securitiesQ #ow do you rate on the scale belowQ 4%@ 2ood, >@
orstG
otal ;o of Person % 4KG 4KG 3 4KG 8 4KG > 4KG
8- 88 3 %> %% D
>-
-
8/10/2019 investmentbanking-130715225937-phpapp02
51/58
Investment Banking
>G hich facility of +otak (ecurities do you appreciate the mostQ
otal ;o
of Person
*asy
*!uity
4KG
*asy
IP$
4KG
*asy
9erivatives
4KG
*asy
utual
5und 4KG
*asy
Insurance
4KG
8- 38 %3 33 %3 D
?G #ow do you find the customer relationship management of +otakQ
7ate it on the scale belowQ 4%@ 2ood, >@ orstG
otal ;o of Person % 4KG 4KG 3 4KG 8 4KG > 4KG
8- 3% D %D %3 %
1 (%)44%
2 (%)23%
3 (%)15%
4 (%)11%
5 (%)7%
1 (%)
2 (%)3 (%)
4 (%)
5 (%)
>%
-
8/10/2019 investmentbanking-130715225937-phpapp02
52/58
Investment Banking
DG #ow do you find follow up services of +otak securities in terms of
onthly reports and othersQ 7ate it on the scale belowQ 4%@ 2ood, >@
orstG
otal ;o of Person % 4KG 4KG 3 4KG 8 4KG > 4KG
8- 8- D %- %3 %-
FG )ny limitations to +otak (ecuritiesQ
:II)I$;(
>
-
8/10/2019 investmentbanking-130715225937-phpapp02
53/58
Investment Banking
)fter conducting the survey the limitations !uoted were as follows
%G :ack of Branches or 5ranchisee for trading purpose.
G elephonic transactions are at times difficult.
3G 9ifficulty in internet trading sometimes due to technical
problem in loading of sites.
8G ;o proper marketing strategy.
;oteA Percentage rounded off to nearest figures.
RECOMMENDATIONS3
)fter studying the working of +otak (ecurities for ;onInstitutional
investors 4Investment Banking for general publicG and taking into account
the survey report they should further improve the !uality of services
provided by them in regards with transaction statement and the other
limitations which are !uoted by the public.
+otak securities should increase their network of branches according to
customer database and also area wise. It should be done gradually as it
re!uires lots of capital and it should also not affect the company as awhole.
If the above recommendations are put into action by +otak (ecurities, it
will improve its profitability and goodwill of the company along with
customer satisfaction.
>3
-
8/10/2019 investmentbanking-130715225937-phpapp02
54/58
Investment Banking
CONCLUSION
he future of investment banking industry as a whole looks bright. any
more pure merchant banks & advisory firms could convert themselves
into full service investment banks that would broaden the market & make
the service delivery much more efficient. In addition, the technology &
market developments shaping the capital market would also provide an
added path to the growth of investment banking. Better regulatory
supervision & stricter enforcement of the code of conduct of market
intermediaries would ensure better issuers come to market & e"isting
issuers would follow enhanced standards of corporate governance. In
long run, all these developments would ensure fair returns to investors, &
encourage them to invest in the market. his would lead to growth for
capital market in general & investment banking industry also.
(o hereby I conclude that +otak (ecurities is an upcoming brand, in the
area of security business 4Investment BankingG, trying hard to providevarious services and facilities to their clients. ;ow as per their recent
>8
-
8/10/2019 investmentbanking-130715225937-phpapp02
55/58
Investment Banking
strategy they are tying to capture retail investors, in order to increase their
goodwill in the market. In future the company will e"pand and diversify
its business in terms of new products and innovations in e"isting products
to cater to the needs of their valuable customers.
BIBLIOGRAP5Y3
(ourceA
Investment Banking)n $dyssey in #igh 5inance
Pratap (ubramanyam.
anaging Investment Banks )n Introduction
I/5)I
anaging Investment Banks )dvance opic
I/5)I
/IBLIOGRAP5Y3
(ourceA
www. kotaksecurities.com
www.google.com
>>
-
8/10/2019 investmentbanking-130715225937-phpapp02
56/58
Investment Banking
>?
-
8/10/2019 investmentbanking-130715225937-phpapp02
57/58
Investment Banking
>D
-
8/10/2019 investmentbanking-130715225937-phpapp02
58/58
Investment Banking