Merchant Banks in India

Merchant Banks

A Merchant Bank is a traditional term for an Investment Bank & can also be used to express the private equity activities of banking. Merchant Banks were traditionally banks engaged in trade financing. In present day scenario it refers to banks which provide capital to firms in the form of shares rather than loans. They deal in all activities starting from underwriting bonds to originating foreign loans; provide advisory services to corporations and wealthy individuals on how to use their money.