Investment banking provides financial advisory services and helps companies raise capital through activities like mergers and acquisitions. It assists companies in going public by estimating product value and buying or selling securities on their behalf for a commission. Investment banks also underwrite new debt and equity securities. A key source of income is providing advisory services for acquisitions by performing due diligence to determine a company's value and help settle deals. ESG compliance, which evaluates environmental, social and governance standards, is also becoming increasingly important for investment banks and the companies they support.

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Investment Banking
Investment banking will engage in financial advisory services on behalf of a company,
an individual or governments. Whenever the term ‘investment banking’ is brought
into consideration, corporate finance is often associated with. They can either raise the
finance capital or act as client’s agent in the assurance of securities.
On top of those services, investment banking also assists in mergers and acquisitions
and provides many other services such as market making, equity services, and FICC
services. However, it is important to note that most banks deploy it to prime brokerage
and asset management departments.
To pen it down, investment banking acts as a buffer between the security issues and
investors to help startups to go public. After the products are estimated by their
experts, they either buy the products or sell them and gain profit through commission.
Despite serving different purposes and business entities, investment banking is one of
the complex financial mechanisms in the world. The main source of income for
investment banks is by providing acquisition advisories. For an example, let’s have
two companies - Company A and Company B -- to understand how investment
banking works. More often than not, Company A will not be aware of the worth of
Company B. In order to take a step closer to collaboration, it is important to
understand the cost and revenue of Company B. Additionally, investment banks will
also make due diligence to determine the value of the company, thereby helping
Company A to settle the deal as soon as possible.
In this case, banks might work on the buying side or even the selling side. If the deal
is big, the investment bank will gain more commission. Deal and commission are
directly related.
Besides, investment banking companies also underwrite new debts and equity
securities for all types of corporations. They will also include securities as a way to
increase client’s money and put down perfect documentations with securities and
commission to go public.
The buying company would have been tracking another company before approaching
them. With approaches changing on a day-to-day basis, it is important to satisfy ESG
to recoup some amount. Besides, ESG is also seen as a long-term approach to boost
the company’s fortunes rather than an average effect on the company with a short-
term approach.
ESG stands for Environmental, Social, and Governance. Only when all three
satisfactories are met, a company can become ESG compliance. It is important to meet
those given the current standards set by the ever growing startups.

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The company must not stand as a threat to the environment and must comply with the
regulations of social norms and governance as well. If the company is not deemed to
have matched any one of them, the fund will automatically be turned down.
ESG funds in India are handled well by some of the leading investment firms in the
subcontinent. India is still in its nascent stages of ESG funds. It will take long for
many companies in India to be ESG compliant. ESG also aims to return superior
amounts from selected companies.