Merchant Banks serve to the various financial needs of businesses these institutions don't serve to the public by taking deposits. The primary service is providing support to manage equity offerings of their clients the support could extend to underwriting of the shares. Typically, corporate clients hire services of one or more firms for underwriting of shares during the initial public offering. The support of a merchant bank for equity management extends to pricing and management as their primary objective is to help raise funds for clients.
With the evolution of world economics, merchant banking services have grown and they serve to diverse banking needs of businesses. Investment portfolio management service of merchant bank is to avoid market risks and this service may extend to the wealthy individuals. It may also specialize in restructuring services which are a key part of growth and sustainability life cycle of a business entity. The consultation is for business reorganization, joint ventures, mergers, etc. This consultation includes strategies to help their client achieve restructuring objectives. It is involved at various stages of the restructuring process to facilitate informed decision making. As a financial advisory, the merchant bank can also offer support in the valuation which is a crucial step of the restructuring process.
SEBI is the regulatory body that has categorized merchant bank and they can provide services based on this categorization. Only a Category 1 Merchant Banker is authorized to provide services all major banking activities and act as an issue manager. Whereas a category 2 merchant banking firm can provide portfolio management, underwriting, and financial advisory services. This categorization is on the basis of capital adequacy of a agent banker. The merchant banks registered under category 4 can only provide advisory and consultancy services. Depending on its area of specialization, even a merchant bank obliged to operate in all service areas may only operate in a specific area. Besides, capital adequacy SEBI also grants recognition taking into account the professional competence and infrastructure. It is clearly indicated its responsibilities and it can't function without authorization from SEBI. A merchant banker is also subjected to actions in case of non-compliance with the regulations of SEBI
CCV is a well-established company with its registration as Category 1 Merchant Bank. It is authorized to provide all major merchant banking service to clients acting as issue manager, portfolio manager, advisor, and consultant, it also provides underwriting support.
The functional areas of Merchant Bankers in India have grown with the economic evolution; offering a wider range of services. These services includes company registration, valuation of company in India , merge two companies, direct listing on nse, bse etc.