Question

Weakness in the functioning of merchant bankers in india

Answer 1

Answer:

The functions of merchant banking are listed as follows:

Raising Finance for Clients :

Merchant Banking helps its clients to raise finance through issue of shares, debentures, bank loans, etc.

It helps its clients to raise finance from the domestic and international market.

Answer 2

The vital weaknesses in the functioning of merchant bankers in India is to restrict their activities only to issue related.

Step by step explanation:

• A net worth of minimum 1 crore rupees is required for the authorization of any merchant. Anybody with a net worth less than this is denied to do the merchant banking business.

• The refunds related to the application money and non cooperation regarding the allotment of securities by the issuing company is also a weak point of the merchant banking.

• Merchant Banking refers to a financial institute which deals in the business loans, international financial, issue management, project & portfolio counseling, loan syndication, and underwriting services.