A merchant bank provides capital to companies through equity ownership rather than loans. It advises companies on corporate matters and helps with promotional activities like project conception, feasibility studies, and government approvals. Historically, merchant banks managed public stock offerings and provided other services like underwriting, credit syndication, leasing and portfolio management. Today, merchant banks continue to offer advisory services and assist with issuing and servicing debt and equity securities.

2.  It is a financial institution providing capital to
companies in the form of share ownership
instead of loans.
 It also provides advisory on corporate
matters to the firms in which they invest.
 The historical term "merchant bank" refers to
an investment bank.

3.  It is defined as financial institutions which
makes negotiated private equity investment in
the unregistered securities of either privately or
publicly held companies.
 In India merchant banking services were started
only in 1967 by National Grindlays Bank
followed by Citi Bank in 1970.
 The State Bank of India was the first Indian
Commercial Bank having set up separate
Merchant Banking Division in 1972.

4. 1. Promotional Activities:
 A merchant bank functions as a promoter of
industrial enterprises in India He helps the
entrepreneur in conceiving an idea,
identification of projects, preparing feasibility
reports, obtaining Government approvals
and incentives, etc.

5. 2. Issue Management:
 In the past, the function of a merchant banker
had been mainly confined to the management
of new public issues of corporate securities by
the newly formed companies, existing
companies (further issues) and the foreign
companies in dilution of equity
 The services provided by them include, the
preparation of the prospectus, underwriting
arrangements, appointment of registrars,
brokers and bankers to the issue, advertising
and arranging publicity and compliance of listing
requirements of the stock-exchanges, etc.

6. 3. Credit Syndication:
 Merchant banks provide specialized services
in preparation of project, loan applications for
raising short-term as well as long- term credit
from various bank and financial institutions,
etc.
4. Leasing and Finance:
 Many merchant bankers provide leasing and
finance facilities to their customers. Some of
them even maintain venture capital funds to
assist the entrepreneurs. They also help
companies in raising finance by way of
public deposits.

7. 5. Portfolio Management:
 Merchant banks offer services also to the
investors. They advise their clients, mostly
institutional investors, regarding investment
decisions.
 Merchant bankers even undertake the
function of purchase and sale of securities
for their clients so as to provide them
portfolio management services.

8. 6. Servicing of Issues:
 Merchant banks have also started to act as
paying agents for the service of debt-
securities and to act as registrars and
transfer agents.
 Thus, they maintain even the registers of
shareholders and debenture holders and
arrange to pay dividend or interest due to
them

9.  It is a broking arm of reliance capital.
 One of the leading retail broking house.
 It provides customers in access with
1. Equities
2. Derivatives
3. Currencies
4. Mutual funds
5. Bonds
6. Corporate FD’s

10.  It was started in 2005.
 It offers secure online trading platform &
investment activities in a cost effective and
convenient manner.
 It also provide the convenience of trading
offline through variety of means including live
chat , call and trade, branch dealing desk
and network of affiliates.

11.  They also provide
1. Car insurance
2. Two wheeler insurance
3. Mutual funds
4. bond & FD’s
5. Health insurance
6. Travel insurance
7. Retirement solutions