2. CONTENTS
Definition
Origin
About
Services
Scope in India
Merchant Banking Structure in India
Main Merchant Banking Companies
Commercial Banking Vs Merchant Banking
Merchant Account
Methods of processing credit cards
How to start a merchant account
Required documents
How to apply for merchant account
Merchant banker
Categories of Merchant Bankers
Qualities of Merchant Bankers
3. DEFINITIONS
A merchant bank is a financial institution
providing capital to companies in the form of
share ownership instead of loans. A merchant
bank also provides advisory on corporate
matters to the firms in which they invest.
4. ORIGIN
Merchant Banking started in Italy in the
middle ages.
Reached in France during 17th century
In England, Merchant Banking was introduced
in 18th century.
Merchant banking came to India through
Grindlays Bank in 1967 and City bank in 1970.
SBI started the merchant banking division in
1972.
6. SCOPE IN INDIA
Growth of new issue market
Entry of foreign investors
Changing policy of Financial Institutions
Development of debt market
7. MERCHANT BANKING STRUCTURE IN
INDIA
MERCHANT BANKS
PUBLIC SECTOR PRIVATE SECTOR
INTERNATIONAL
BANKS(10)
COMMERCIAL
BANKS (24)
FINANCIAL
INSTITUTION (6)
STATE INSTITUTIONS (4)
BANKS (10)
FINANCE AND
INVESTMENT (231)
8. MAIN MERCHANT BANKING
COMPANIES
PUBLIC SECTOR PRIVATE SECTOR FOREIGN PLAYERS
SBI capital markets ltd. ICICI securities ltd. Goldman Sachs(India)
securities pvt. Ltd.
PNB Axis bank ltd. Morgan Stanley India
company pvt. Ltd.
Bank of Maharashtra Bajaj capital ltd. Barclays securities (Indi)
pvt. Ltd.
Karur Vysya bank ltd. Reliance securities ltd. Bank of America
State Bank of Bikaner and
Jaipur
Kotak Mahindra capital
company ltd.
Citigroup Global Markets
India pvt. Ltd.
IFCI financial services ltd. Yes bank ltd. DSP Merril Lynch ltd.
9. COMMERCIAL BANKING Vs
MERCHANT BANKING
COMMERCIAL BANKING MERCHANT BANKING
Catering needs of common man Catering needs of corporate firms
Anyone can open an account It cannot be done
Less exposed to risk More exposed to risk
Related to secondary market Related to primary markets
It’s asset oriented It’s management oriented
Plays the role of financers Plays different roles like underwriting,
portfolio etc.
10. MERCHANT ACCOUNT
A Merchant Account is a type of bank account
that allows businesses to accept payments in
multiple ways, typically debit or credit cards.
11. METHODS OF PROCESSING CREDIT
CARDS
Credit card terminal
Automated response unit
Payment gateway
Level 2 or 3 processing
Merchant account marketing
Marketing by banks
Marketing by Independent Sales
Organization(ISO)
12. HOW TO START A MERCHANT
ACCOUNT
STEP 1: Research merchant account options from banks
in local area.
STEP 2: Apply for the merchant account, providing all
necessary documentation and information.
STEP 3: Submit to the bank a detailed list of the type of
business activities you conduct.
STEP 4: Show proof of a website to the bank, if you are
conducting business online.
STEP 5: Pay the application fee and any other required
upfront fees for setting up the merchant account.
13. REQUIRED DOCUMENTS
Business checking account
Proof of identification
Social security number or federal employer
identification number
Detailed statement of business activities
Tax returns and financial statements for business
Website(for online business)
Secure check out system(for online business)
14. HOW TO APPLY FOR MERCHANT
ACCOUNT
STEP 1: Check your credit history and rating before
applying for a merchant.
STEP 2: Apply for an internet merchant account, if you
want to process transactions online.
STEP 3: Enter your business name, address and phone
numbers.
STEP 4: Provide your company details.
STEP 5: List the type of services provided.
STEP 6: Provide information about yourself as the
business owner.
STEP 7: Enter references, if required.
STEP 8: Submit your application to the processor and
await a decision.
