Scope of Investment Banking in India

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Scope of Investment Banking in India:

The concept and its implementation of globalization and liberalization, together with aggressive policy of the multinational corporations, have indeed boosted up not only the growth and development but also the scope and the future of Investment Banking in India.

Never has the surge and the demand for investment banking been more greater than now, with most of the corporation thinking globally, crossing both national and international boundaries. This concept of investment banking is not of a recent or modern times, this has always been present in the developed countries, but has off late made its presence and mark very strongly in India.

Nonetheless, said above the following is the list of activities mentioned below, which an Investment Banker is engaged in:

  • Investment banks are mostly related to the share market and the capital stock markets. These investment banks act as an intermediary between the Listed Corporations and the share applicants.
  • These investment banks also provide advisory services for the purpose of all those listed companies that are intending to make an “initial public offer” (IPO)as well as the “follow on public offer” (FPO).
  • Investment banks also act as underwriters and provide several underwriting services, both in the case of the initial public offer and follow on public offer in case the minimum public subscription does reach the desired level which has been mentioned according to the rules stipulated by the SEBI.
  • Investment banks also provide several other advisory services such as in the case of Mergers and Acquisitions between two corporations.
  • Investment banks also offer their financial services in the case of all kinds of capital markets and secondary market offerings.
  • Their other range of activities involves proprietary trading; financial instruments and financial securities research and investment management and also includes managing and handling client portfolio.
  • Some investment banking companies also provide and offer their services of Risk Management, which usually involves the activity of research and investigation of the stock market to manage the risk and the rewards in the client portfolio.
  • All investment banking companies charge heavy commission and fees for all the services that they offer and provide to multinational corporations.

Scope of Investment Banking in India:

  • Global Economic conditions, together with the All Round Development (both politically & economically) have led to the scope and growth of the Investment Banking in India.
  • Given the area of activities which are mentioned above, there is always need and demand of Investment banking in India.
  • Investment bankers are always need in Primary Markets, Capital markets, and the Stock exchanges, since the level of activities have increased to high level compared to some decades before.
  • Not only Multinational Corporations, but also several Indian Corporate , need and use the services of the Investment Bankers in India.
  • Most of the Banks and the Financial Institutions, both domestic and international require the need and the use of Investment Bankers.
  • All corporations which restructure themselves through the merger and acquisitions, depend heavily on the reliable services of Investment Bankers.

Salary and Remuneration of Investment Bankers:

  • An Amateur Investment Banker can easily earn up to  30,000/- in a month, and this figure just keeps on increasing as the years and experience goes by.

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