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EVOLUTION & GROWTH OF

INVESTMENT BANKING IN INDIA

Presented By:-

Presented To:-

Chakshu Goel

Naveen keswani

Rahul Goel

Ranjit singh

Vipul mittal

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DEFINITION OF INVESTMENT BANKING

An investment bank is a financial institution that assistsindividuals, corporations and governments in raisingcapital by underwriting and/or acting as the client'sagent in the issuance of securities.

An investment bank may also assist companies involved

in mergers and acquisitions, and provide ancillaryservices such as market making, trading of  derivatives, fixed income instruments, foreignexchange, commodities, and equity securities.

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HISTORY

� By the middle of 1800·s, professional investmentbanks had sprung up in the US to help government

raise funds for infrastructure projects and the civil

war.

� European Investment banks (excluding UK) stuck with

the universal banking concept and they remained

active primarily in their local markets through the

1900·s.

� The Glass-Steagall Act, passed on June 16, 1933, and

officially named the Banking Act of 1933, introducedthe separation of bank types according to their

business (commercial and investment banking),

� Gram leach Act 1999.

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SOME INVESTMENT BANKING FIRMS

1 . G O L D M A N S A C H S &

C O .

2 . T H E B L A C K S T O N EG R O U P

3 . M O R G A N S T A N L E Y

4

5 . J P M O R G A N

I N V E S T M E N T B A N K  

6 . M E R I L L LY N C H

7 . C I T I M A R K E T S &

B A N K I N G

8 . L A Z A R D

9 . C R E D I T S U I S S E

I N V E S T M E N T

B A N K I N G D I V I S I O N

1 0 . U B S I N V E S T M E N T

B A N K  

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INVESTMENT BANKING IN INDIA

EVO LUT IO N

T O P 1 0 I N V E S T M E N T B A N K I N I N D I A

J P M O R G A N

U S B A G

G O L D M A N S A C H

D E U T S C H E B A N K

H S B C

M O R G A N S T A N L Y  

I C I C I S E C U R I T I E S

K O TA K M A H I N D R A

S B I C A P I TA L M A R K E T S

A M B LT C O P O R AT I O N F I N A N C E

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ROLE OF INVESTMENT BANK

Investment banks is to advise companies in raising

money or funds.

An investment banking firm also does a large amount of consulting and Provide advice on mergers,

acquisitions, and other financial transactions.

Research and develop opinions on securities, markets,and economies

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CONT«

Professionals advising and supporting organizations on several levels:

Strategy

Operations

Finance

Issue, buy, sell, and trade stocks and bonds

Manage investment portfolios of companies as well as of individuals

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COMMERCIAL BANK

� accepts deposits, makes business loans, and offers

related services.� allow for a variety of deposit accounts, such as

checking, savings, and time deposit.

� they are primarily concerned with receiving deposits

and lending to businesses.

INVESTMENT BANK

� acts as an underwriter or agent for corporations issuing securities.

�maintain broker/dealer operations, maintain markets for previouslyissued securities, and offer advisory services to investors.

� facilitating mergers and acquisitions, private equity placements and

corporate restructuring.

� do not accept deposits from and provide loans to individuals.

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All the Investment Banking companies in India are

incorporated under Companies Act.

Investment banks like SBI that are incorporated under 

separate statue are regulated by their respective statue.

Universal Banks and NBFC are regulated by RBI

Foreign Banks are regulated by FEMA and FEMR.

Apart from above regulations Investment banks are

also governed by other laws applicable to other banks

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Global Slow down of 2008, had put a question mark on the future

of Investment banking in countries like U.S. but India had learned a

lot from this.

The future of Investment banking in India is good but strictguidelines are being put forward by Regulatory authorities in order 

to ensure smooth functioning of investment banking in India.

These Guidelines will ensure -: Ensure Better Risk Management

Help protect against fraud and unethical business investment

companies.

It will ensures restoration of Profits.

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