A merchant bank may be considered as an institution which centers its operation on all or mostly in management of issue of various securities traded in stock exchange, underwriting, project counseling, corporate counseling in areas of capital restructuring or effective management of finance, amalgamations, mergers, takeovers, technical consultancy services, portfolio management, investment management, equipment leasing and providing venture capital etc.
According to SEC in Bangladesh “ Merchant banking means any person who is engaged in the business of issue management either by making arrangements regarding selling, buying, underwriting, or subscribing to the securities underwriter, manager, consultant, adviser or rendering corporate advisory services in relation to such issue management.”
From the above definition, it is apparent that the area and scope of merchant banking in our country –
-issue management
-underwriting/placement
-portfolio management
According to SEC in Bangladesh “ Merchant banking means any person who is engaged in the business of issue management either by making arrangements regarding selling, buying, underwriting, or subscribing to the securities underwriter, manager, consultant, adviser or rendering corporate advisory services in relation to such issue management.”
From the above definition, it is apparent that the area and scope of merchant banking in our country –
-issue management
-underwriting/placement
-portfolio management