Origins & Early History

The investment banking industry in India is young and has been active for about four decades. There have been significant developments in the structure, role and importance of investment bankers over the years and they play a significant advisory role in capital formation, mergers and acquisitions, disinvestment and other advisory functions for a corporation. As the scope of what constitutes investment banking business has expanded over the years with vital ingredients of knowledge, foresight and sincere advise remaining constant. Needless to add, reputation, credibility and trust are the hallmarks of a successful investment banker.

From the foregoing, the main characteristics that still distinguish the merchant banking business can be described:

Reputation, credibility and trust are the hallmarks of a merchant banker

A merchant banker rarely invests their own funds. If at all, it is only for a short duration.

Merchant Banking is essentially a fee based business.