REFERNCE

http://www.scribd.com/doc/25040288/Assignment-on-Banking-Service-Operation-
EBanking

http://business.mapsofindia.com/investment-industry/investment-banks.html

http://www.thehindubusinessline.com/2009/02/11/stories/2009021151561000.htm

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Foreign investment bankers turning towards India for growth prospects
Hopeful of garnering M&A deals, say analysts.

Tania Kishore Jaleel

Mumbai, Feb. 10 Investment banking giants are collapsing around the world and
revenues from such activities are shrinking drastically for Indian broking houses. But
these have not dissuaded two foreign institutions from announcing plans of starting
investment banking operations in the country.

Last week, the US-based Jeffries Group announced that it has received licence from SEBI
to set up its merchant banking business here. On Thursday, Japanese bank Nomura
announced the launch if its on-shore investment banking and equity trading operations
here.

Analysts said Indian market seems to be attractive to these organisations despite the
slump.

“These sort of firms seems to be sniffing around and waiting till the end of the year to see
if something good might turn up. At the moment they seem to be looking at business
development rather than revenue hunting,” said Mr Saurabh Mukherjea, Head of Indian
Equities at Noble.

Mr Devesh Kumar, Managing Director at Centrum Broking, said as the Indian economy
is growing much faster than most other countries, cross-border M&A opportunities look
good in India.

M&A numbers

According to global consultancy firm Grant Thornton’s annual Dealtracker, the number
of M&A deals announced in 2008 fell to 445 from 676 in 2007. The value of these deals
fell from $51.11 billion in 2007 to $30.72 billion in 2008. Telecom, pharma and health
care, banking and financial services and IT& ITeS were the leaders as far as sectoral
values were concerned during the year.
In the primary market, there were 95 public offerings in 2007 raking in Rs 45,137 crore.
This fell to 36 IPOs in 2008, and the amount mobilised fell to Rs 16,927 crore.

Jefferies will offer investment baking services to mid-sized and growing clients. The
company said it would also be involved in working with financial sponsors and
companies regarding buybacks of heavily discounted foreign currency convertible bonds.

Nomura has acquired memberships on the NSE and BSE and will provide its global
institutional clients access to the Indian markets. The bank will initially focus on sales
and trading of equities, futures and options. The firm is also seeking regulatory approval
for offering direct market access in the second quarter of this year.

The edge

Jefferies India Country Head and Managing Director Mr Sidharth Punshi said they are
“looking at deals but the closure of these deals will take some time.” He added that at this
point most of his competitors are “distracted”, which gives Jefferies the “upper-hand”.

Nomura in October last year had taken onboard most of the employees at Lehman
Brothers, and that accounts for the timing of their entry here.

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Wholesale banking
From Wikipedia, the free encyclopedia
Jump to: navigation, search

Wholesale banking is the provision of services by banks to the likes of large corporate
clients, mid-sized companies, real estate developers and investors, international trade
finance businesses, institutional customers (such as pension funds and government
entities/agencies), and services offered to other banks or other financial institutions. In
essence, wholesale banking services usually involve high value transactions.

Wholesale banking contrasts with retail banking, which is the provision of banking
services to individuals.

(Wholesale finance means financial services, which are conducted between financial
services companies and institutions such as banks, insurers, fund managers, and
stockbrokers.)

Modern wholesale banks are engaged in: finance wholesaling, underwriting, market
making, consultancy, mergers and acquisitions, fund management.
References
• http://www.wisegeek.com/what-is-wholesale-banking.htm

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Concept of Investment Banks

The banking scenario in India is itself huge, covering the different facets of the economy.
By and large, investment banks in India are itself an institution which generates funds in
two different ways. The first manner in which it works is by drawing public funds via the
capital market by way of selling stock in their company. The other way in which it
operates is to seek for venture capital or private equity, as a substitute for a stake in their
company.

Role of an Investment Bank

The major work of investment banks includes a lot of consulting. For instance, they offer
advices on mergers and acquisitions to companies. The other arena where they give
advice are tracking the market and determining when should a company come out with a
public offering and what is the best possible way to manage the public assets of
businesses. The role that an investment bank plays sometimes gets overlapped with that
of a private brokerage house. The usual advice of buying and selling is also given by
investment banks.

There is no demarcating line between the investment banking and other forms of banking
in India. This has been observed majorly of late. All banks nowadays want to provide
their customers the best of services and create a niche for themselves and that is why
apart from investment banks, all other banks too are aiming at making it big.

At the macro level, investment banking is related with the primary function of assisting
the capital market in its function of capital intermediation, i.e., the movement of financial
resources from those who have them (the investors), to those who need to make use of
them for producing GDP (the issuers). Over the decades, investment banks have always
suited the needs of the finance community and thus become one of the most vibrant and
exciting segment of financial services.

Globally investment banks handle significant fund-based business of their own in the
capital market along with their non-fund service portfolio which is offered to the clients.
All these activities are broadly segmented across three platforms - equity market activity,
debt market activity and merger and acquisitions (M&A) activity. In addition, given the
structure of the market, there is also a segmentation based on whether a particular
investment bank belongs to a banking parent or is a stand-alone pure investment bank.