Merchant Banking Operations in Bangladesh

2415 Words May 16th, 2011 10 Pages
Merchant Banking Operations in Bangladesh 1
A merchant bank is a financial institution which is primarily engaged in offering financial services and provides advice to corporations and to wealthy individuals. The term can also be used to describe the private equity activities of banking.
Investment Banking is an American synonym of merchant banking. Investment banks provide advice on mergers and acquisitions and are involved in financing industrial corporations through buying shares and selling them in relatively small lots to investors.
In the context of Bangladesh, merchant banking includes all financial institutions that combine the functions of both development banking and investment banking.

History of Merchant Banking:
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Ltd., Swadesh Investment Management Limited, Lanka Bangla Finance Limited, Grameen Capital Management Limited, South Asia Capital Ltd., Prime Finance &Investment Ltd., EC Securities Ltd., Mercantile Securities Limited, GSP Finance Company (Bangladesh) Ltd., Bangladesh Mutual Securities Ltd., BRAC EPL Investment Ltd, Prime Bank Limited, Arab Bangladesh Bank Ltd., ICB Capital Management Ltd., Export Import Bank of Bangladesh Ltd. (EXIM Bank), Union Capital Limited , AAA Consultants and Financial Advisers, Citigroup Global Markets Bangladesh Private Limited, Trust Bank Ltd, Southeast Bank Ltd, Standard Bank Ltd, Sonali Bank Limited and Agrani Bank Limited, The Citigroup Global Markets Bangladesh, the Trust Bank.
Of them, a total of 37 companies received merchant banking licences from the commission between January 1998 and April 2010.

Merchant Banking Operations in Bangladesh
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The SEC on September 7, 2008 cancelled the merchant banking licence of the Equity Valuation Research and Distribution Ltd. The Securities and Exchange Commission on October,2008 cancelled merchant banking licences of the First Securities Services Ltd and the Raspit Securities and Management Limited with immediate effect since they remained inactive for years together. The First Securities Services was given licence to act as issue manager while the Raspit Securities and Management as full-fledged merchant bank, which was allowed to

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