merchnt bnk.docx

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ASSIGNMENT 1

SUBJECT: MERCHANT BANKING

SUBMITTED BY: GOMATHIVALLI K

REG NO: 12381018

DEPARTMENT OF BANKING TECHNOLOGY

SCHOOL OF MANAGEMENT

PONDICHERRY UNIVERSITY

PUDUCHERRY605 014


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INDBANK MERCHANT BANKING SERVICES LIMITED

Indbank Merchant Banking Services Limited (Indbank) had its genesis as a MerchantBanking Division of Indian Bank in 1982 to provide specialised Merchant Banking and allied

services. The division had managed 133 issues for an aggregate value of Rs.2250 crore

between 1982 and 1989. The division was also involved in investor education programs in

various centers across the country.

Indbank was incorporated as a wholly owned Subsidiary of Indian Bank in 1989 to take over

the business of Merchant Banking division of Indian Bank and to undertake other specialised

activities like Leasing, Hire Purchase etc which banks were permitted to undertake only

through their subsidiaries. Indbank was one among the few subsidiaries to be formed by

nationalised banks for undertaking Merchant Banking and allied services.

INCORPORATION & CERTIFICATE OF COMMENCEMENT OF BUSINESS

Indbank was incorporated on 11th August 1989 and obtained certificate of registration

bearing No. 18-17883 of 1989 from the Registrar of Companies, Tamilnadu. Indbank

obtained certificate for commencement of business from the Registrar of Companies,

Tamilnadu on 17th August 1989.

PROMOTERS

Indbank was promoted by Indian Bank, which was among the first native banks to be

incorporated in south India in 1907. Indian Bank was nationalised in 1969. Indian Bank is

also the promoter of Indian Bank Mutual Fund (a trust) for mutual fund activities, Indbank

Housing Limited (along with HUDCO) and Indfund Management Ltd. (asset management

company for Indian Bank mutual fund).

MANAGEMENT

Indbank is managed by the President and Whole Time Director under the supervision of the

Board of Directors of the company. The President and Whole Time Director is assisted by

Executive Vice President, Vice President's, Asst. Vice President's, Senior Project Executive,

Project Executives, Senior Secretarial Officers & Secretarial Officers.

BUSINESS&ACTIVITIES

Indbank as part of fee based activities is engaged in: I Merchant Banking & Advisory

Services II Stock Broking III Depository Participant Activities IV Distribution of Mutual

Fund & other investment products


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Indbank has Registered and Corporate Office at Chennai and branches at Mumbai, Chennai,

Delhi, Bangalore, Coimbatore, Ahmedabad, Tirunelveli, Madurai, Hyderabad and

Puducherry where the fee based activities are carried on.

1. Merchant Banking & Advisory Services

Indbank is a Category 1 Merchant Banker registered with SEBI. Indbank undertakes:

Acting as Merchant Bankers: Under various capacities like Lead Manager, Co-Manager, Advisor, Arranger etc. for public issues, rights issues and private placement.

For acquisition of shares & takeovers under Securities Exchange Board of India(Substantial Acquisition of shares and Takeovers) Regulations, 1997, Securities

Exchange Board of India (Buyback of Securities) Regulations, 1998 and SecuritiesExchange Board of India (De-listing of Securities) Guidelines, 2003.

For Employee Stock Option Scheme / Stock Purchase Scheme by Corporates under the

Securities Exchange Board of India (Employee Stock Option Scheme and Employee Stock

Purchase Scheme), Guidelines, 1999.

2 .Advisory Services

a. Valuation of shares & other financial instruments

b.Syndication of Loans

c.Stock Audit

d. Mergers & Amalgamations

e.Project Counselling, appraisal and feasibility studies

Under Merchant Banking, Indbank is governed by SEBI (Merchant Bankers Rules), 1992,

SEBI (Merchant Bankers) Regulations, 1992, Guidelines issued to Merchant Bankers and

Lead Managers prior to issue of codified RBM (GI Series), SEBI Guidelines, Rules and

Regulations primarily governing companies and the relevant circulars issued by SEBI from

time to time.

STOCK BROKING

Indbank is a SEBI registered member National Stock Exchange of India (NSE), Madras

Stock Exchange (MSE) and Over The Counter Exchange of India (OTCEI). At present Stock

Broking is done only through NSE as virtually no activity takes place in MSE and OTCEI.

Under broking, Indbank is governed by SEBI (Stock Brokers & Sub Brokers) Rules, 1992,

SEBI (Stock Brokers & Sub Brokers) Regulations, 1992, SEBI Circulars and Circulars issued

by Stock Exchanges from time to time.


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DEPOSITORY PARTICIPANT ACTIVITIES

Indbank is a SEBI registered Depository Participant with National Securities & Depository

Limited (NSDL) and is governed by the Depositories Act 1996, SEBI (Depositories &

Participants) Regulations, 1996 and circulars issued by SEBI and NSDL from time to time.

DISTRIBUTION OF MUTUAL FUND AND OTHER INVESTMENT PRODUCTS

As part of broking, Indbank distributes Mutual Fund and investment products and is

registered with the Association of Mutual Funds of India (AMFI) for distribution of Mutual

Fund products.

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merchnt bnk.docx