The Evolution of Merchant Banking in the Indian Scenario

The Evolution of Merchant Banking in the Indian Scenario

August 17, 2019 Admin 5
Merchant BankersMerchant BankingResurgent Indiafinancial servicescommercial bankersIndian economyfunding solutionsBanking Services

With the advent of the industrial boom in India, there has been a growing need of Merchant Bankers. Businesses often require specialised banking services which are concentrated in nature. Hence, commercial bankers set up their merchant banking subsidiaries to cater  financial services for the corporate sector.

 

The Evolution of Merchant Banking in the Indian Scenario

The first Merchant Banker was set up in 1967 by Grindlay’s Bank, after that there were a number of merchant banks incorporated. There are multiple factors that have accelerated the importance of Merchant Banking in the country. These could be enlisted in the following pointers:

 

Globalisation of Economy: Post the 1991 reforms, the Indian economy opened its gates to overseas organisations. This encouraged fundings coming in from abroad and thereby pivoting the importance of Merchant Bankers.

 

Increased Competition: With favourable business options and lucrative market scenarios, the Indian corporates buckled up their games and were on an expansion spree. This encouraged the Merchant Bankers to play substantial roles with their specialised services towards Corporates.

 

Change in Consumer Trends: With multiple foreign players setting shop on Indian soil, there has been a boost in the quality of products that were being offered to the Indian masses. This in turn transformed the strategies of the Indian counterparts. Financial products and instruments became more prominent in the prevailing environments.

 

Government Reforms: With reduction in Government intervention and privatisation, there was a boost in the private corporate sector. Also, increasing the limits on investments and reduction in direct interventions proved to be a lucrative proposition of foreign players.

 

These factors, along with the enhancement on the ease of doing business has paved the way for Merchant Bankers to gain a considerable position. In addition, SEBI has served to be an effective watchdog for merchant banking activities. We, at Resurgent India are a Category I Merchant Banker, registered under SEBI. We are a one point stop towards catering all merchant banking activities. Do write to us at corporate@resurgentindia.com

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