Duties of Investment Banking Firms in India

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Duties of Investment Banking Firms in India
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The big, wide world of investment banking
One of the fastest growing and developed
financial industry in the world is that of
investment banking. Investment banking is one of
the most sort after topics. And why would it not?
After all, it is a gamble that investment bankers
play to multiply the money of their clients and
give them the best of returns. It helps the
investors achieve their financial goals and stay
afloat even during times of crisis in the market.
There are many investment banking firms in India,
but the best one is the one who performs below
functions the best.
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Playing the role of a mediator
One of the primary functions of an investment
banker is to play the role of being a facilitator
or a mediator. When there is any kind of merger
or acquisitions happening, it is the investment
bank of the parties that take care of the
negotiations, differences and settlement between
the two parties. The investment banking firm also
optimizes the prices and terms and conditions so
that everything happens smoothly, and nobody
loses anything.
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Underwriting
Investment banking firms in India or even abroad
handle debt and equity securities from the public
offerings. The underwriting is sort of a
guarantee that is given by the bank to its
members or every party in question, assuring them
that all processes will be done in accordance
with the law and are also bonded to purchase
securities from company issuing it.
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Selling to hedge funds
For any investment bank, it is very important to
gather information about all the companies that
there are recommending and, on the stocks,
(whether to buy or sell them), how much
profitable will investment in a particular
company be and so on. The report that is made is
generally used for internal purpose, but it could
also be sold to hedge funds managers for
generating revenue.
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Managing risk
It is a known fact the investment banking is a
very risky business. With the ever-fluctuating
marketing conditions and interest rates, with
inflation always at the doorstep of investment,
it becomes a very important duty of the
investment banking firms to manage the risks that
the market might throw at their client investor.
this is done through swaps, which is a mechanism
or a system that is built in which two or more
parties can exchange or swap their obligations
and can take care of the said partys risk in an
efficient manner.
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Thank You
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