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M.K.M.P COLLEGE OF SCIENCE AND COMMERCE THAKURLI (EAST) PROJECT REPORT ON STUDY OF INVESTMENT BANKING PROJECT REPORT SUBMITED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE DEGREE OF B.COM (BANKING & INSURANCE) UNIVERSITY OF MUMBAI SUBMITED BY PRATHMESH .D. KELUSKAR. (13) (T.Y B.COM BANKING & INSURANCE) (SEMESTER-V) UNDER THE GUIDENCE OF PROF.MRS. SHILPA MAM PROF.MISS. POOJA MAM ACADEMIC YEAR (2011-2012)

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INDEX
Design of the study................................................................................
Meaning of bank................................ Definition of bank........................................... Executive Summary Research Methodology Objectives of the Study . . . ..

Chapter 1. Outline of Investment Banking.....

Introduction . Definition . Origin of Investment Banking......

Chapter 2. Investment Banking Industry....

Players of Market..... Functions of Investment Bank.. The Main Activities & Units........ Qualities required for Investment Banker.....

Chapter 3. Mergers &Acquisitions...

Mergers & Alliance.

Chapter 4. Services Provided by Investment Bank.......

What do Investment Banks do?............................. Services Provided by Investment Banks........ Investment Strategies.... Institutional Equities Securities.. One Stop Consulting. Real Estate Investment Banks.

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Chapter 5. Merchant Banking..

History ...... Modern Practices.... Role of Merchant Banker in Primary Market.......

Chapter 6. Outsourcing Of Investment Bank.... Chapter 7. Investment Banking in India........ Chapter 8. Top Investment Banks....
Outside India. In India..

Chapter 9. Case study.. Conclusion ....... Bibliography .

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MEANING OF BANK:A bank is the place where they accept deposits from people and lend loans and charge interest on them and performs agency functions, and provide certain facilities like providing lockers facilities and perform certain on the basis of its motive ...eg: IDBI BANK in India used to provide financial facilities to industrial sector.. Actually meaning of bank is not specifies in any regulation or act. In India, different people have different type of meaning for bank. Normal salary earner knows means of bank that it is a saving institution, for current account holder or businessman knows bank as a financial institutions and many other. Bank is not for profit making, it creates saving activity in salary earner.

DEFINITION OF BANK:"A bank is an institution, usually incorporated with power to issue its promissory notes intended to circulate as money (known as bank notes); or to receive the money of others on general deposit, to form a joint fund that shall be used by the institution, for its own benefit, for one or more of the purposes of making temporary loans and discounts; of dealing in notes, foreign and domestic bills of exchange, coin, bullion, credits, and the remission of money; or with both these powers, and with the privileges, in addition to these basic powers, of receiving special deposits and making

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FUNCTION OF BANK Banking Regulation Act of India, 1949 defines Banking as "accepting, for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdraw able by cheques, draft, order or otherwise". Deriving from this definition and viewed solely from the point of view of the customers, Banks essentially perform the following functions : 1. Accepting Deposits from public/others (Deposits) 2. Lending money to public (Loans) 3. Transferring money from one place to another (Remittances) 4. Credit Creation 5. Acting as trustees 6. Keeping valuables in safe custody 7. Investment Decisions and analysis 8. Government business.

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Design of the Study Executive Summary

1. For Investment Banks the market today has never been so good. Stock markets are booming, the economy is on the rise, unheard amount of money is being raised through IPOs. 2. Mergers & Acquisitions are the name of game today. Overall the picture seems to be very bright. The Industry sets poise to stage on impressive growth. 3. However other than the impressive growth, one area of concern in the Investment Banking Industry has been the area of ethics. 4. It is high time things are looked into. Regardless of all these, Investment Banks have an important role to play. 5. The competition has never been so intense. Effective internal control systems & risk management practices, innovative knowledge, management techniques & a strong ethical culture are some of prerequisites needed to survive today. 6. These fundamentals will enable Investment Banks to accept & exploit the changes rather than be over helmed by them.

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Objective of the Study

y To get an overview of Investment Banking Industry. y To analyze the growth of Investment Banking Industry y To study the innovative concepts emerging in the Investment Banking Industry.

Research Methodology
In order to conduct the research an appropriate methodology became necessary. In this direction both primary as well as secondary data were attempted to be collected. The methodology is concentrated in the following area: 1. Method of collecting the data. 2. Method of recording the collected data. 3. Method of having the qualitative interpretation of the data. 4. Method to make quantitative interpretation of the data. Each step of methodology is explained in the following submission step by step. The methodology foe collecting data with reference to the secondary data was taken from the different published articles, books journals, & the relevant websites. The different libraries of the colleges, institutions were of great help. Other related information was collected through internet which proved to be of a great use. The websites are mentioned in the bibliography at the last. The data collected was then refined by making a qualitative as well as a quantitative analysis.

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Chapter. 1 Outline of Investment Banking Introduction

Investment banks help companies and governments raise money by issuing and selling securities in the capital markets (both equity and debt), as well as providing advice on transactions such as mergers and acquisitions. Until the late 1980s, the United States and Canada maintained a separation between investment banking and commercial banks. A majority of investment banks offer strategic advisory services for mergers, acquisitions, divestiture or other financial services for clients, such as the trading of derivatives, fixed income, foreign exchange, commodity, and equity securities.

Dealing with the pension funds, mutual funds, hedge funds, and the investing public who consume the products and services of the sell-side in order to maximize their return on investment constitutes the "buy side". Many firms have buy and sell side components

Investment banking is a particular form of banking which finances capital requirements of enterprises. Investment banking assists as it performs IPOs, private placement and bond offerings, acts as broker and carries through mergers and acquisitions.

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Definition

Investment banking is defined as, An individual or institution which acts as an underwriter or agent for corporations and municipalities issuing securities. Most also maintain broker/dealer operations, maintain markets for previously issued securities, and offer advisory services to investors. investment banks also have a large role in facilitating mergers and acquisitions, private equity placements and corporate restructuring. Unlike traditional banks, investment banks do not accept deposits from and provide loans to individuals. also called investment banker.

Investment banking can also be defined as, Division of banking encompassing business entities dealing with creation of capital for other companies. In addition to acting as agents or underwriters for companies in the process of issuing securities, investment banks also advise companies on matters related to the issue and placement of stock.

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Origin of Investment Banking

American Banking Before World War I

In the early 1800s the financing of canals, railroads, and a few industries in the United States depended heavily on imported capital, chiefly from Britain. Defaults in state securities in the 1840s for a time cut off the supply of foreign capital and led to stronger efforts to tap the domestic capital market, which had been confined to wealthy traders and ship owners in New York City and Philadelphia. Investment banking received a further strong impetus during the American Civil War (1861-1865) from the example of a syndicate of banking houses, led by the financier Jay Cooke. The syndicate sold a billion dollars' worth of government bonds to large numbers of individual investors through the use of thousands of salesmen and an extensive advertising campaign. This venture marked the first mass securities-selling operation carried out in the United States. After the Civil War, investment bankers concentrated on the sale of railroad bonds. Over-commitments in this field led to the panic of 1873, set off by the startling failure of Jay Cooke and Company. In the 1890s widespread railway defaults and receiverships occurred again. Some larger houses, including the firms of J. P. Morgan and of Kuhn, Loeb, played a major part in huge mergers such as that of the U.S. Steel Corp. (1901) and the Northern Pacific and Great Northern railroads (1904). Morgan, in particular, favored monopolies to preserve business profits and investor confidence. This ran counter to the trust-busting program of Theodore Roosevelt who was U.S. president at the time.

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Chapter.2

Investment Banking Industry

Players of the market
The biggest investment banks include Goldman Sachs, Merrill Lynch, Morgan Stanley, Credit Suisse First Boston, Citigroups Global Corporate Investment Bank, JPMorgan Chase and Lehman Brothers, among others. Of course, the complete list of I-banks is more extensive, but the firms listed above compete for the biggest deals both in the U.S. and worldwide. You have probably heard of many of these firms, and perhaps have a Brokerage account with one of them. While brokers from these firms cover every major city in the U.S., the headquarters of every one of these firms is in New York City, the epicentre of the I-banking universe. It is important to realize that investment banking and brokerage go hand-in-hand, but that brokers are one small cog in the investment banking wheel. As we will cover in detail later, brokers sell securities and manage the portfolios of retail (or individual) investors.

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Functions of Investment Banking:

1. The term "Investment Banking" is occasionally misconceived as investment in the field of banking. Investment banking is actually a banking function, which commercial banks apply to help their clients acquire funds and generate wealth through prudent investment of their resources. 2. In addition, investment bankers of commercial banks also offer advice to companies about business transactions they might engage in. 3. With the advice of investment bankers, an institution can generate funds in two different ways. It may draw on public funds through the capital market by selling its stock. 4. Alternatively, it may seek out venture capitalists or private equity to become stakeholders in the company. 5. Investment banking firms also engage in financial consulting and offer advice to companies on how to handle acquisitions and mergers. 6. They also notify their client companies on when to make public offerings and how best to manage the assets. 7. The function of mergers and acquisitions come under the corporate finance function of an investment bank. 8. Investment banking help public and private corporations in issuing securities in the primary market, guarantee by standby underwriting or best efforts selling and foreign exchange management 9. Investment banking provides financial advice to investors and serves them by assisting in purchasing securities, managing financial assets and trading securities.

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The Main Activities & Units

On behalf of the bank and its clients, the primary function of the bank is buying and selling products. Banks undertake risk through proprietary trading, done by a special set of traders who do not interface with clients and through Principal Risk, risk undertaken by a trader after he buys or sells a product to a client and does not hedge his total exposure. Banks seek to maximize profitability for a given amount of risk on their balance sheet. An investment bank is split into the so-called FrontOffice, Middle Office, and Back Office. Front Office

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Investment banking is the traditional aspect of investment banks which involves helping customers raise funds in the Capital Markets and advising on mergers and acquisitions. These jobs tend to be extremely competitive and difficult to land. The investment banking division (IBD) is generally divided into industry coverage and product coverage groups. Industry coverage groups focus on a specific industry such as healthcare, industrials, or technology, and maintain relationships with corporations within the industry to bring in business for a bank. Product coverage
groups focus on financial products, such as mergers and acquisitions, leveraged finance, equity, and high-grade debt.

Investment management is the professional management of various securities (shares, bonds, etc.) and other assets (e.g. real estate), to meet specified investment goals for the benefit of the investors. . Investors may be institutions (insurance companies, pension funds, corporations etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes eg. mutual funds). Sales & Trading In the process of market making, traders will buy and sell financial products with the goal of making an incremental amount of money oneach trade.

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Structuring has been a relatively recent division as derivatives have come into play, with highly technical and numerate employees working on creating complex structured products which typically offer much greater margins and returns than underlying cash securities. The necessity for numerical ability has created jobs for physics and math Ph.D.s who act as quants.

Merchant banking is a private equity activity of investment banks. Examples include Goldman Sachs Capital Partners and JPMorgan One Equity Partners.

Middle Office

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Risk Management involves analyzing the market and credit risk that traders are taking onto the balance sheet in conducting their daily trades, and setting limits on the amount of capital that they are able to trade in order to prevent 'bad' trades having a detrimental effect to a desk overall. Another key Middle Office role is to ensure that the above mentioned economic risks are captured accurately. In recent years the risk of errors has become known as "operational risk" and the assurance Middle Offices provide now includes measures to address this risk. When this assurance is not in place, market and credit risk analysis can be unreliable and open to deliberate manipulation.

Finance areas are responsible for an investment bank's capital management and risk monitoring. By tracking and analyzing the capital flows of the firm, the Finance division is the principal adviser to senior management on essential Areas such as controlling the firm's global risk exposure and the profitability And structure of the firm's various businesses. In the United States and United Kingdom, a Financial Controller is a senior position, often reporting to the Chief Financial Officer. Compliance areas are responsible for an investment bank's daily operations' compliance with FSA regulations and internal regulations. Often also considered a back-office division.

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Back Office

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` Operations involve data-checking trades that have been conducted, ensuring that they are not erroneous, and transacting the required transfers. While some believe it provides the greatest job security with the bleakest career prospects of the divisions within an investment bank, many have outsourced operations. It is however a critical part of the bank that involves managing the financial information of the bank and ensures efficient capital markets through the financial reporting functions. In recent years due to increased competition in finance related careers, college degrees are now mandatory at most Tier 1 investment banks. A finance degree has proved significant in understanding the depth of the deals and transactions that occur across all the divisions of the bank.

Technology refers to the IT department. Every major investment bank has considerable amounts of in-house software, created by the Technology team, who are also responsible for Computer and Telecommunications-based support. Technology has changed considerably in the last few years as more sales and trading desks are using electronic trading platforms. These platforms can serve as auto-executed hedging to complex model driven algorithms. An investment bank can also be split into private and public functions with a Chinese wall which separates the two to prevent information from crossing. The private areas of the bank deal with private insider information that may not be publicly disclosed, while the public areas such as stock analysis deal with public

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Qualities required in investment banker

Investment banks want employees with a combination of strong analytical and Interpersonal skills. Some jobs lean more towards one skill set than another (e.g. brokers need to be mainly sales people). A typical job of an equities Analyst requires both analytic and interpersonal skills. The skills involved include:

Key Skill Area People skills: Sales skills: Communication skills: Analytical skills: Ability to synthesize: Creative ability: Initiative: Work hours:

Requirement High Medium High High High High Medium 50-120/week

Hard Work Expected and Respected Investment banking is a high work, high risk, high reward profession. When you start your hours will typically be long but the work can be exciting. Be prepared for moments of frustration where you are stretched too thin and moments of exhiliration where everything clicks.

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Tough to Break In
It's relatively hard to break into investment banking. You need to be prepared to pursue firms on your own after you have thoroughly prepared yourself.

Believe it or Not, Bankers Have Social Value Investment bankers are often the subject of social scorn in movies like Bonfire of the Vanities. Are investment bankers really greedy narcissistic scum? Some probably are. But keep in mind that they play a crucial social role of helping to direct capital to companies with great ideas that make people better off.

Communication and Completion Abilities Key

In mid-career, your success usually will depend on your ability to communicate with clients and get deals done. At this level it is also important to have a good understanding of market trends, the political and macroeconomic environment and deal mechanics.

Traders are Multi-Talented

It's hard to define what makes a good trader. A good understanding of the market, quick reactions, analytical skills and the ability to bluff help. Read Liars Poker by Michael Lewis to learn more about sales and trading.

Teamwork Crucial
A crucial success factor in investment banking is teamwork. Being able to pull together persons with large egos to get a presentation together for a client is a challenge and is likely to be rewarded highly.

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Chapter.3 Mergers & Acquisitions

Mergers & Acquisitions Department (M&A) is responsible for structuring and executing a wide range of complex domestic and international transactions including acquisitions, divestitures, mergers, joint ventures, strategic alliances, corporate restructurings, shareholder relations, recapitalizations, spin-offs, exchange offers, leveraged buyouts and defenses against unsolicited takeover attempts. The department also establishes and maintains strategic dialogues with existing and potential clients, provides financial advice and solutions to strategic problems and assists clients in achieving short- and long-term strategic objectives. The M&A group is oriented to provide the best solution for each individual client, and works closely with the Banking group and other product group areas to best serve clients.

On the Buy side, we work closely with our clients in understanding their growth requirements, developing their acquisition strategy, identifying potential acquisition targets and assisting in negotiations with the target companies and in transaction structuring and closure. Our services also include providing merchant banking services for open offers for acquisition of shares from public shareholders. On the Sell side, we work with clients on divestitures, spin offs, and strategic sales, where we assist them in identifying potential buyers, negotiating with the buyers and in transaction structuring and closure.

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Chapter.4 Services Provided by Investment Banking What Do Investment Banks Do?

In their book Doing Deals, Eccles and Crane define the function of an investment bank as "mediating the flow of assets between issuers and investors" (1988, chap. 2). In the pure investment banking or corporate finance relationship, investment banks' fundamental purpose is to lower the frictions involved in issuing new securities. These frictions arise because the two primary parties to the transaction are generally geographically separate, have no or only limited knowledge about the other party, and have opposing interests in the precise terms of the transaction. For example, issuers prefer a higher price for their securities while investors would prefer to buy the paper at a lower price. Institutionally, however, banks do far more than aid in the issuance of securities. Though issuance is an important corporate finance function, banks also provide advice in mergers and acquisitions and aid in designing customized securities to suit issuers' needs through structured finance. Banks generally have extensive sales and trading operations across asset classes and frequently operate money management operations on an agency basis for institutional clients. For the purposes of this paper, it is important to note that large classes of investment banks also have retail operations, providing brokerage services to individual investors. Finally, banks may have proprietary or principal operations, either in trading or merchant banking.

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Services Provided

Investment Bank provides one of the most extensive and flexible services, through in-depth and authoritative intelligence on corporate transactions worldwide and analyzing comprehensive information. It recognizes that the key challenge for growing companies lies in its ability to attract investment, technical expertise, and management know-how to drive the business forward. It operate globally to secure the investment/ partners through joint ventures , mergers, partnerships, co-branding, outsourcing, franchises and collaborations. It also delivers a fully integrated service across the spectrum of capital market products. It has strengthened its ability to operate in the world's financial markets on behalf of corporations, institutions and medium enterprises.

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Investment Strategies
Investment Bank manages a range of equity, fixed-income, asset allocation, and alternative asset class portfolios, focusing on global, regional, developed, and emerging markets, plus a number of specialty products, including country and sector funds. It offers new products in response to an evolving global market and our clients' investment needs. The broad scope of our product selection allows us to meet the needs of virtually any client, from large institutional investors and high-net-worth individuals to retirement plan participants

Institutional Equities Securities 1. Debt Capital Markets 2. Leveraged finance capital markets services 3. Equity capital markets services

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One Stop Consulting

ONE-STOP GROWTH CONSULTING SERVICES:-

Investment Banks serve many clients with an interest in strategic alliances or forming partnership to meet strategic and financial objectives. Our extensive industry relationship and in-depth knowledge cover all relevant sectors. It provides the one stop solution with service across:1. Valuing a business 2. Divesting non core assets. 3. Growth consultancy through structural alliances 4. Aligning access to capital through our investment banking services 5. Refining corporate strategy for growth orientation.

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These assignments typically involve...

y Understanding your business and the industry in-depth. y Developing an appropriate strategy given current industry trends and Competitive dynamics. y Determining likely strategic partners, sourcing clients from extensive contacts in the industry across the globe y Contacting qualified prospects discreetly and confidentially. y Managing the due diligence process. y Conducting in-depth financial analysis and preparing comprehensive investment proposals. y Structuring a mutually beneficial model and offer. y Negotiating the deal through to closing. y In all of its growth assignments, Investment Banks strives to achieve maximum value and an optimal strategic fit for its clients.

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Real Estate Investment Banking

Now days there are millions of people engaged in fields such as construction, insurance, mortgage banking, real estate appraisals, brokerage and leasing and real estate development. Apart from this many of them engaged in corporate real estate and in real estate lending in commercial banks, saving and loans etc. Real estate is security for mortgages and for large amount of financial assets. Work in real estate is rewarding, ever changing and challenging. Real estate investment banking is the most important criteria in real estate. Real estate investment banking is a pioneering method to real estate financing. It includes structuring of real estate projects to abide with specific legal and tax requirements. Here bank investors underwrite for companies issuing securities, and then advice the company on the issuance and placement of its stocks. We focus of structured financing products and services, especially in real estate development. Here our clients will obtain best execution by divulging each financing opportunity to the broadest possible targeted investor base. Our professionals are experienced enough as they solve problems easily and get solutions to client needs thus achieving the most flexible terms at lowest overall cost of funds. Real estate investment banking group has various methods of capital growing for real estate investment trusts (REITs) and real estate operating companies (REOCs). We provide structure joint ventures, initiate, negotiate acquisition issues through our financial advisory services etc.

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Chapter 5. Merchant Banking History

Merchant banks, now so called, are in fact the original "banks". These were invented in the middle Ages by Italian grain merchants. As the Lombardy merchants and bankers grew in stature on the back of the Lombard plains cereal crops many of the displaced Jews who had fled persecution after 613 entered the trade. It was a short step from financing trade on their own behalf to settling trades for others, and then to holding deposits for settlement of "billete" or notes written by the people who were still brokering the actual grain. And so the merchant's "benches" (bank is a corruption of the Italian for bench, as in a counter) in the great grain markets became centers for holding money against a bill (billette, a note, a letter of formal exchange, later a bill of exchange, later still, a cheque). These deposited funds were intended to be held for the settlement of grain trades, but often were used for the bench's own trades in the meantime. The term bankrupt is a corruption of the Italian banca rotta, or broken bench, which is what, happened when someone lost his traders' deposits. Being "broke" has the same connotation.

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Role of merchant banker in a primary market issue management.

Merchant banker is the intermediary appointed by companies in the primary market issue. It has to look at the entire issue management and work as the Manager to the Public Issue. Principal steps in a Public issue are as follows:

1. Vetting of Prospects: The prospectus is a document to communicate information about the company and the proposed security issue to the investing public. The draft prospectus containing the disclosures has to be vetted by SEBI before a public issue is made. 2. Appointment of Underwriters: An underwriter agrees to subscribe to a given number of shares in the event the public do not subscribe to them. The underwriter, in essence, stands guarantee for public subscription in consideration for the underwriting commission. 3. Appointment of bankers: The bankers to the issue collect money on behalf of the company from the applicants. 4. Appointment of Registrars: The registrars to issue perform a series of tasks from the time the subscription is closed to the time the allotment is made. 5. Appointment of Brokers and Principal Brokers: The brokers to the issue facilitate its subscription. Filing of the Prospectus with the Registrar of Companies. 6.Printing and despatch of prospectus and application form: After the prospect is filed with the Registrar of Companies, the company should print the prospectus and the application form.
7.Promotion of the Issue: The promotional campaign typically commences with the filing of the prospectus with the Registrar of Companies and ends with the release of the statutory announcement of the issue.
8.Allotment of Shares: If the issue is under-subscribed or just fully subscribed, the company may allot shares applied for by the applicants after securing the formal approval of the concerned stock exchanges(s).

9.Listing of the Issue: The detailed listing application should be submitted to the concerned stock exchanges along with the listing agreement and the listing fee.

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Chapter 6. Outsourcing of Investment Banking

A number of big names have quietly hired Indian firms or set up their own subsidiaries on the subcontinent to handle basic financial modeling and comparable analysis.

The offshoring trend has taken another surprising turn. Having successfully outsourced to India such back-office functions as IT, investment banks are now sending some of their financial analysis and research overseas. In recent months, firms including J.P. Morgan and Morgan Stanley have quietly hired Indian firms or set up their own subsidiaries in India to handle basic financial modeling and comparable analysis.

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Chapter 7. Investment Banking in India

India emerges among the fastest growing investment banking markets The economic liberalization in India has witnessed increased economic activities of the foreign investors in India through investment banks in India. India has become one of the most preferred destination for the global investors. And as a matter of fact huge number of investment banks have opened their shops in India Investment Banks in India offers the following products and services to the Indian industry and individual clients
1. Asset Management 2. Issuing House (Capital Raising) 3. Stock broking 4. Business & Financial Advisory services 5. Export Financing 6. Project Finance

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Chapter 8. Top Investor Bankers

Outside India

1. Lehman Brothers Lehman Brothers is an investment banking and financial services firm. It is a market leader in equity and fixed income sales, trading and research, investment banking, private equity, and private banking. The firm is headquartered in New York, London, and Tokyo.

Structure The publicly traded parent corporation (ticker symbol: LEH; CUSIP number: 524908100) is Lehman Brothers Holdings Inc. The other branches of the business are wholly owned subsidiaries. The firm is a member of the S&P 500 and at last count (2004) had 16,200 employees. The firm's address is: Lehman Brothers; 745 Seventh Avenue; New York, NY 10019; USA.

Subsidiaries Subsidiaries of Lehman Brothers include: Aurora Loan Services, Inc., SIB Mortgage Corporation, Lehman Brothers Bank, FSB, Lehman Brothers Inc., and Neuberger Berman Inc.

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2. JPMorgan Chase
Delaware corporation that uses the brand name JPMorgan Chase for its corporate image advertising and communications and JPMorgan as a brand for the investment bank business, is a global financial services firm with operations in more than 50 countries. Its "corporate dna" is from the company Chemical Bank, which took over Chase Manhattan then later JP Morgan. It retains Chemical's bank headquarters, stock history, and most of its management. In 2004, the company acquired Bank One of Chicago, bringing on star Bank One CEO Jamie Dimon as president and COO of the merged firm and designating him as CEO William B. Harrison, Jr.' s future successor. Dimon quickly made his influence felt by embarking on a cost-cutting strategy and placing some former Bank One executives in key ranks at the new company.

History In 2000, J.P. Morgan & Company merged with the Chase Manhattan Corporation. On July 1, 2004, it merged with the country's sixth largest bank by assets, Chicago - based Bank One. The firm is based in New York City, with offices worldwide.

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In India
1. Kotak Mahindra Capital Co. Kotak India Real Estate Fund I, a close-ended venture capital fund scheme promoted by Kotak Mahindra Realty Fund has closed its domestic tranche raising $100 million. In addition, the fund has received Commitments of $60 million, which is awaiting regulatory approval. The Fund, which has been organised as a scheme of Kotak Mahindra Realty Fund under the SEBI Venture Capital Regulations, has Kotak Mahindra Investments Ltd, as the investment manager. The Fund would make investments at project a level with developers as well at an enterprise level in realty development companies. The Fund has the mandate to make investments in retail, hotels, healthcare, education, etc. The strategy of the Fund would be to invest in the following types of opportunities:Co-investments with large development companies at a project level in various types of property development ventures, e.g., mixed use schemes, hotels, residential, townships, offices, I.T. parks, shopping centres and industrial, etc. Holding company level investments in mid market or large development companies that demonstrate strong specialization in a niche market, high quality brand, strong management team and desire for funding growth through institutional/public equity.

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The management team of the Fund will be led by S Sriniwasan, Chief Executive Officer, and Hari Krishna, Chief Investment Officer. Sriniwasan has over 17 years of experience in the financial services industry, with the last 13 in Investment Banking. Prior to his current position, he was Co-head - Investment Banking With Kotak Mahindra Capital Company. As a key member of the Investment Banking team, he has been instrumental in building the Investment Bank as one of the leading Investment banks in India. Hari Krishna has nearly 9 (nine) years of experience in the real estate advisory and corporate finance industries, working at international companies such as Jones Lang LaSalle and CB Richard Ellis in India. His most recent assignment was as the Director responsible for the corporate finance and investments function at Jones Lang LaSalle in India. Kotak Investment Banking, the investment banking joint venture between Kotak Mahindra Bank and Goldman Sachs, has won four international awards in recent weeks, underpinning its reputation as India's leading investment bank. The awards and rankings are:
y Best Investment Bank in India by Global Finance y Best Investment Bank in India by Finance Asia. y Best Equity House in India by Euromoney. y Best Domestic Equity House by Asiamoney

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2. Bajaj Capital Investment Co. Bajaj Capital is a financial services company engaged in the business of Merchant Banking, Resource Mobilisation, Distribution of Financial Products, Stock Broking, Money Market Broking, Investment Advisory and Financial Planning. Bajaj Capital is a Securities and Exchange Board of India (SEBI) approved Category I Merchant Banker/Investment Advisor, member of Delhi Stock Exchange and dealer on OTC Exchange of India. Bajaj Capital offers you unparalleled capital raising solutions for your business. With over 120 offices in 50 cities all over the country and a network of over 10,000 Advisor Associates, we can connect you to potential investors all over the country Being a value-driven Company that is responsible to its investors, we ensure that every issue that we associate with is worthy of being marketed. After all, we have a reputation built over more than 40 years at stake! But once we take up an issue we make sure that we give our 100 percent to it. In brief, we can 'insure' the success of your IPO.

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T.Y B&I

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INVESTMENT BANKING

Bibliography Sites Reffered

www.wikipedia.com www.vccircle.com/news/investmentbanking www.pnbindia.com/mbddetail

Books Reffered
Indian Banking in New Millennium- M.P.Shrivastava & S.P.Singh

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