What is an Investment Bank ?
Meaning of an Investment Bank from a broader perspective can be perceived as financial bodies acting as intermediaries between a borrower and an investor, who sources capital for the former, from the latter. Investment banking company don’t cater to the general public like traditional commercial banks. Public and private sector companies and HNIs majorly comprise of their customer base. The key function of an Investment banking company is to raise debt and equity funds and facilitate business expansion of their clients. They also offer a plethora of financial advisory services related to Merger and Acquisitions, security trading, custodian services, new issues or IPOs, corporate restructuring, asset management, market research, etc. In definition as per SEBI, “merchant banker” means any person who is engaged in the business of issue management either by making arrangements regarding selling, buying, or subscribing to securities or acting as manager, consultant, adviser, or rendering corporate advisory service in relation to such issue management.