A Study on Merchant Banking in India

Merchant banking services contribute to a country's economic growth by serving as a source of finances and information for firms. Given the rapid growth of the Indian economy, merchant banking services in India are essential. These banking institutions also serve as corporate advisory organizations, assisting firms in making sound financial decisions. The need for merchant banking services in India stems from the country's high degree of industrialization. Merchant banking began in the early twentieth century in the United Kingdom and the United States. Recently, the services provided by Merchant Banks have expanded into additional sectors of activity. Their job is broad, and they may today supply the majority of the financial products required by a business, covering practically all areas of creating and operating industrial units on strong financial footing. This paper investigates the development of merchant banking in India, with an emphasis on its history and progress. The first part of the paper is devoted to outlining the functioning of merchant banking and the way it is monitored by the SEBI. The second portion of the report discussed the procedural requirements established by the SEBI.