Term Paper

“An Overview of Merchant Banking in Bangladesh”

Financial Markets and Institutions (F-509)

Group No-08
Md. Anwar Hossain Id No-29087
Mahamudhul Kabir Id No-29092
Md. Yeasin Id No-30010
Ismath Zerin Rupna Id No-30024

For

Dr. H.M. Mosarof Hossain

Professor
Department of Finance
University of Dhaka

MBA (Evening)
Faculty of Business Studies
University of Dhaka
20-08-2015

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 Term Paper
“An Overview of Merchant Banking in Bangladesh”
INTRODUCTION:
Financial institution that specializes in services such as acceptance of bills of exchange, hire purchase
or installment buying, international trade financing, long-term loans, and management of investment
portfolios. Merchant banks also advise on (and invest own funds in) acquisitions, mergers, and
takeovers. In the US, a merchant account provider is sometimes called a merchant bank. The
Notification of the Ministry of Finance defines merchant banker as ³Any person who is engaged in the
business of issue management either by making arrangements regarding selling, buying or subscribing
to securities as manager-consultant, advisor or rendering corporate advisory services in relation to
such issue management.

In the words of Skully A Merchant Bank could be best defined as a financial institution conducting
money market activities and lending, underwriting and financial advice, and investment services
whose organization is characterized by a high proportion of professional staff able to able to approach
problems in an innovative manner and to make and implement decisions rapidly. A merchant bank
differs from a regular investment bank as it generally deals in the commercial banking requirements of
international finance as well as stock underwriting and long-term corporate loans. A merchant bank is
known as a wholesale bank and isn't used by the general public. Most merchant banks deal with large
corporations as well as with other merchant banks, large financial institutions and, sometimes, various
governments around the world. Merchant banks are not like ordinary bank where individuals can open
up accounts by making deposits.

WHAT IS MERCHANT BANK

A merchant bank is a financial institution that provides capital to companies in the form of share
ownership instead of loans. A merchant bank also provides advisory on corporate matters to the firms
in which they invest. In the United Kingdom, the term "merchant bank" refers to an investment bank.

BRIEF OVERVIEW OF MERCHANT BANK

Merchant banks, now so called, are in fact the original "banks". These were invented in the middle
Ages by Italian grain merchants. As the Lombardy merchants and bankers grew in stature based on the
strength of the Lombard plains cereal crops, many displaced Jews fleeing Spanish persecution were
attracted to the trade. They brought with them ancient practices from the Middle and Far East silk
routes. Originally intended for the finance of long trading journeys, these methods were now utilized

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to finance the production of grain. The Jews could not hold land in Italy, so they entered the great
trading piazzas and halls of Lombardy, alongside the local traders, and set up their benches to trade in
crops. They had one great advantage over the locals. Christians were strictly forbidden the sin of
usury, defined as lending at interest. The Jewish newcomers, on the other hand, could lend to farmers
against crops in the field, a high-risk loan at what would have been considered usurious rates by the
Church; but the Jews were not subject to the Church. In this way they could secure the grain-sale
rights against the eventual harvest. They then began to advance against the delivery of grain shipped to
distant ports. In both cases they made their profit from the present discount against the future price.
This two-handed trade was time-consuming and soon there arose a class of merchants who were
trading grain debt instead of grain.
Merchant banks, also known as investment banks, offer various services in international finance and
long-term loans for wealthy individuals, multinational corporations, and governments.
Merchant banks manage debt and equity offerings. They assist companies in raising funds from the
market. This can include designing instruments, pricing issues, registering offer documents,
underwriting support, issue marketing, allotment and refund, and stock exchange listing. They also
help in distributing securities such as equity shares, mutual fund products, debt instruments, insurance
products, and fixed deposits among others. Merchant banks use a mix of institutional networks—
mutual funds, foreign institutional investors, pension funds, private equity funds, and financial
institutions—and retail networks, depending on how they interact with specific clients.

Merchant banks offer corporate advisory services to clients for their financial problems. Advice may
be sought in such areas as determining the right debt-to-equity ratio, the gearing ratio, and the
appropriate capital structure. Other areas of advice may be in areas of refinancing and seeking sources
of cheaper funds, risk management, and hedging strategies. Further areas for advice are rehabilitation
and turnaround management. Merchant bankers may design a revival package in conjunction with
other financial institutions.

Merchant banks arrange loan syndication for their clients. This begins with an analysis of the
client’s cash flow patterns, helping to determine the terms for borrowing. The merchant bank then
prepares a detailed loan memorandum to be circulated to the banks and financial institutions that are to
join the syndicate. Finally, the terms of lending are negotiated for the final allocation.Merchants Bank
which founded on 1987 with its head office in Dhaka is the first share-holding commercial bank
wholly owned by corporate legal entities. Since its establishment, the bank has undergone capital
enlargement by 3 times, and launched IPO with the issuance of 1.5 Million common shares in March
2002, and was successfully listed in Dhaka Stock Exchange on April 9, 2002. The Bank's total shares
have been increased to 6.4 Million.After 24 years of development, Merchants Bank has transitioned
itself into a national commercial bank with certain scale and influence, from a regional bank located in
Dhaka, Chittagong. The Bank has been building up its business network and organizational structure

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with headquarter located in Dhaka, and penetrated into both nation-wide domestic cities and overseas
market. Merchants Bank has set up branches in more than 4 major cities in Bangladesh.

Now, Merchants Banks has become one of the biggest share-holding commercial banks
in Bangladesh base on its operation scale and build an excellent brand and market image. Its “All-in-
one card” and “All-in-one net” has become the most famous financial products in Bangladesh.

RESEARCH HYPOTHESIS:
For orderly growth and development of the securities market, investor confidence is a prerequisite. In
the primary market investor confidence depends in a large measure on the efficiency of the issue
management function which covers drafting and issue of prospectus or letter of offer after vetting by
SEC to timely dispatch of share certificates or refund orders. To ensure proper disclosure and to bring
about transparency in the primary market with a view to protect investors interests, SEC has issued
Merchant Bank Regulations.
The Merchant Bank Regulations which seek to regulate the raising of funds in the primary market
would assure for the issuer a market for raising resources at low cost, effectively and easily, ensure a
high degree of protection of the interests of the investors and provide for the merchant bankers a
dynamic and competitive market with high standard of professional competence, honesty, integrity
and solvency. The regulations would promote a primary market which is fair, efficient, and flexible
and inspires confidence.

The Regulations stipulate that any person or body proposing to engage in the business of merchant
banking or presently engaged as managers, consultants or advisors to issue would need a certificate
granted by Securities and Exchange Board of Bangladesh.

The Board may grant or renew a certificate to a merchant banker subject to the following conditions
namely:
(a) Merchant banker, in case of any change in its status and constitution shall obtain the prior
permission of the Board to carry on its activities as a merchant banker;
(b) It would pay the amount of fees for registration or renewal; as the case may be, in the manner
provided in the regulations;
(c) It would take adequate steps for redressed of grievances of the investors within one month of
the date of the receipt of the complaint and keep the Board informed about the number, nature
and other particulars of the complaints received;
(d) It would abide by the rules and regulations made under the Act in respect of the activities
carried on by the merchant banker.
The certificate of registration or its renewal, as the case may be, issued under rule 4 shall be valid for a
period of three years from the date of its issue to the applicant.
The consideration for application for grant of certificate takes into account:
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 (a) That the applicant is a body corporate,
(b) Employment of two persons, who have the experience to conduct the business of merchant
bankers,
(c) A person directly or indirectly connected with the applicant has not been granted registration,
(d) Capital adequacy and whether involved in litigation relating to securities market,
(e) Whether convicted or found guilty of economic offense,
(f) Infrastructure like adequate office space, equipment and manpower,
(g) Applicant is a fit person and professional qualification in finance, law or business
management,
(h) Grant of certificate is in the interests of investors.
Procedure for appeal to the Government of Bangladesh has also been prescribed against the order of
SEC.

INSPECTION:
SEC may inspect books of accounts, records and documents of merchant bankers to ensure that the
books of account are maintained in the required manner, that the provisions of the Act, rules,
regulations are being complied with, to investigate complaints against the merchant banker and to
investigate suo moto in the interest of securities business or investors interest into the affairs of the
merchant banker.
SEC may either give reasonable notice or undertake inspection without notice in the interest of
investors.

HISTORY OF MERCHANT BANKING IN BANGLADESH:

The concept of merchant banking is in a development phase in our country. Regulatory bodies and
Government is always trying to develop the capital market focusing the welfare of the 4 investor
through building a stable and secured market. The first ever stock exchange came into existence in
Bangladesh (then East Pakistan) in the name of “East Pakistan Stock Exchange Association Ltd”. It
took two years more to launch its formal operation. 1964, the name of East Pakistan Stock Exchange
Limited was changed to "Dacca Stock Exchange Ltd." Investment Corporation of Bangladesh (ICB)
was the pioneer in the country that has performing with strong reputation in the country’s capital
market spreading its activities in all the segments of capital market. In 1987, the Bangladesh
Government prepares and presents the Securities & Exchange Rules. In 1993, DSE took step ahead to
update its all share price index on the basis of the design suggested International Finance Corporation
(IFC). In 1994, Securities & Exchange Commission (SEC) published rules regarding the activities of
dealers and brokers. The title of the rules is set (Stock-dealers, Stock-brokers and Sub brokers). In
1996, SEC introduces SEC (Merchant Baker & Portfolio Manager) Regulations, along with SEC
(Mutual Funds) Regulations, 1996. Except the activities of ICB, merchant banking in Bangladesh had
started their activities. Now there were no legal obligations of the issuer companies to engage an issue
manger at the time security issue. In 1997, some bank and non banking organization give proposal to
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get the permission of operate merchant banking operation. In 1998, DSE introduced automated
trading; it is a great breakthrough both for the country and stock exchange. IDLC of Bangladesh got
license full-fledged merchant banker. It is the first licensed full-fledged merchant banker in the
country. Another 10 full-fledged merchant banker introduces in this. In 1999, another 5 non banking
organization started as full-fledge merchant banker. Prime Finance and Investment Limited started
their full-fledge merchant banking operation from this year. In 2000, only one non banking
organization introduced as a full-fledge merchant baker. In 2001, Prime Bank and Arab Bangladesh
Bank started their operation as a merchant banker, another 2 non-banking organization started their
merchant banking operation. From 2002 to 2009, another 10 merchant banker are introduced and most
of them are private commercial banking organization. The number of full-fledged merchant banker is
now 29. Another two companies is also registered as merchant banker but currently deals with issue
management and portfolio management only.
To register as a merchant banker, SEC asks some requirements as below:
1. Issue Manager: At least 1 (one) proposal for public issue be submitted to the Commission in
each calendar year
2. Portfolio Manager: In addition to own portfolio, at least 5(five) new portfolio accounts be
opened in each calendar year
3. Merchant Banker: 1 (one) issue management, 2 (two) underwriting, 5(five) new portfolio
accounts be opened in each calendar year
Besides these, merchant bankers need a pre-condition of capital of TK 100 million for the registration
of full-fledged merchant banker. Tk 10 million of capital is needed of a company is registered for issue
management and underwriting or portfolio management only. For issue management, it is needed 2.5
million only.

MERCHANT BANK OPERATING IN BANGLADESH:

Merchant banks were allowed to operate with the hope of playing a meaningful role in salvaging the
country's limping stock market, by generating fresh funds, following the 1996 stock market crash. So
far, a total of 31 companies received merchant banking licenses from the Securities and Exchange
Commission. The registered merchant banks are: Janata Bank Limited, BRAC Bank Limited, City
Bank Limited, Premier Bank Limited, Mutual Trust Bank Limited, Industrial Development Leasing
Company of Bangladesh Ltd, Uttara Finance and Investment Limited, Banco Trans World
(Bangladesh) Limited, Fidelity Assets and Securities Company Ltd., N DB Capital Ltd., Bay Leasing
and Investment Limited, Alliance Financial Services Ltd., Business and Management Co. 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
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Limited, Trust Bank Ltd, Southeast Bank Ltd, Standard Bank Ltd, Sonali Bank Limited and Agrani
Bank Limited.
Of them, a total of 35 companies received merchant banking licences from the commission between
January 1998 and April 2002. The Citigroup Global Markets Bangladesh Private obtained the license
in the year of 2007 and the Trust Bank in the year of 2008. Six more FIs are going to be approved by
the SEC.
The SEC on September 7, 2008 cancelled the merchant banking license of the Equity Valuation
Research and Distribution Ltd. The Securities and Exchange Commission on October, 2008 cancelled
merchant banking licenses 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 perform as issueand portfolio
manager as well as underwriter for clients.
In the year of 2009, of the then 28 merchant banks, 23 had full-fledged merchant banking licence,
while four had only issue management licence and one had only portfolio management licence.
The central bank of Bangladesh asked the commercial banks to run their merchant banking business
through separately formed subsidiary companies, officials and bankers. Under those new regulations,
the banks had to convert their existing merchant banking wing or department into a separate subsidiary
company by January31, 2010.
Recently, securities regulators gave its go-ahead to six more financial institutions (FIs) to operate
merchant banking. Because, analysts questioned their expertise and financial base. The Securities and
Exchange Commission (SEC) also approved rights offer of Bay Leasing and Investment Ltd.
The six financial institutions are Jamuna Bank, Mutual Trust Bank Ltd, The City Bank, Summit
Group's Cosmopolitan Traders Private Ltd, Green Delta Insurance and Alpha Capital Management
Ltd, a unit of Progressive Life Insurance.
According to the SEC officials, the approval will bring the total number of merchant banking at 35. By
giving nod to the six FIs to operate as merchant banks, the SEC has increased maximum limit of the
merchant banking operation in the stock market to 50 from 35. But, although 31 merchant banks are
operating, only a few (only some) are active while the performance of the rest is "far from
being satisfactory."

1. UNDERWRITING:
Underwriting operation is one of the important functions of a merchant banker by which it can
increases the supply of stock/shares and debentures in the market. It is an arrangement whereby the
underwriter undertakes to subscribe the unsubscribed portion of shares/debentures offered by any
public limited company. This encourages the prospective issuers to offer shares/debentures to the
public for subscription and they can raise funds from the public.
One or more investment banking firms may underwrite public offerings. The underwriters have the
responsibility of pricing new shares and selling them to investors. The company pays the underwriters a
fee. Underwriter also provides advice to a company issuing securities or to an issue manager. Before
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granting authority to 17 non-bank financial institutions in 1997 to conduct merchant banking business in
Bangladesh under the Securities and Exchange (Merchant Bankers and Portfolio Manager) Regulations
1995, specialized financial institutions, and the nationalized commercial banks and insurance companies
were the key underwriters in the country's securities market.

2. ISSUE MANAGEMENT:
Issue Management function of merchant Banking helps capital market to increase the supply of
securities. Being a Issue Manager these FIs provide assistance to the Private Limited Companies
intended to be converted into Public Limited Companies by way of obtaining necessary permission from
the relevant authorities, preparing prospectus for public issue of shares and debentures, involving itself
in the collection of application money, scrutiny of applications, arranging for lottery relating to
allotment, if required, allotment of shares and debentures, refund of application money etc.
3. PORTFOLIO INVESTMENT MANAGEMENT SERVICSE:

Portfolio means a collection of investments owned by an investor, an institution or a mutual fund and
portfolio manager means the entity responsible for investing a mutual fund's assets, mapping out its
investment strategy and managing day-to-day securities trading. Portfolio management is the process
of building, managing and assessing an inventory of company products and projects.´6 One of the most
important functions of merchant banking is to provide Portfolio Management service to the customer.
Basically, Portfolio Management Services program has four different wings to provide portfolio
investment management services.
The SEC allowed banks to launch merchant banking operation through opening of separate wing
mainly to deal in portfolio investment on behalf of clients' account in order to channel pool of
investors' fund into the stock market in an organized manner.

4. MERGER AND ACQYISITION:

The phrase mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate strategy,
corporate finance and management dealing with the buying, selling and combining of different
companies that can aid, finance, or help a growing company in a given industry grow rapidly without
having to create another businessentity.´7 Merchant banking helps to negotiate companies in this case.

MERCHANT BANKING IN BANGLADESH: LAWS AND REGULATIOS:

The SEC granted authority to 17 non-bank financial institutions in 1997 to conduct merchant banking
business in Bangladesh under the Securities and Exchange (Merchant Bankers and Portfolio Manager)
Regulations 1995,

The Securities and Exchange Commission (SEC), invited letters of intent from14 institutions for the
registration of merchant banks based on SRO No. 59 of 24 April1996, and a decision taken by it on 17
August1997. Prior to this decision, seven (7) institutions submitted such letters of intent and SEC gave
registration to a total of 19.
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Under the SEC merchant banker licensing rules, a merchant bank working only as issue manager has to
submit at least a documented proposal for an initial public offer of a company, while a merchant bank
licensed to act only as portfolio manager has to form at least five new portfolios of its clients besides its
own, and a merchant bank working as a full-fledged merchant bank has to manage one IPO, to be under
writer of two issues and form five new portfolios of its clients besides its own in a calendar year. A full-
fledged merchant bank has to perform at least two operations among the three including managing
portfolio in a calendar year.

MERCHANT BANKING IN BANGLADESH: CUSTOMERS

In our country, the customers of merchant banking are as follows in general:
1. Any Bangladeshi over 18 years of age
2. Any Corporate body (ies)
3. NRB (s) through NITA Account

NATURE OF MERCHANT BANKING:

Merchant banking is skill based activities and involves serving every financial need of every client. It
requires focused skill-base to provide for the requirements of the client. Bangladesh bank has made the
quality of man-power as one of the criteria for registration as merchant banker. These skills should not
be concentrated in issue management and underwriting alone, which may have an adverse impact on
business. Merchant bankers can turn to any of the activities mentioned above depending upon
resources, such as capital, foreign tie-ups for overseas activities and skills. The depth and
sophistication in merchant banking business are improving since the avenues for participating in
capital market activities have widened from issue management and underwriting to private placement,
bought out deals (BODS), buy-back of shares, mergers and takeovers. The services of merchant bank
cover project counseling, pre investment activities, feasibility studies, project reports, design of capital
structure, issue management, underwriting, loan syndication, mobilization of funds from Non-Resident
Indians, foreign currency finance, mergers, amalgamation, takeover, venture capital, buy back and
public deposits. A Category-1
Merchant banker can undertake issue management only. Separate registration is not necessary to carry
on the activity as underwriter.

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CODE OF CONDUCT:
The code of conduct stipulates that in the performance of duties, merchant banker should act in an
ethical manner, inform the client that he is obliged to comply with the code of conduct, render high
standard of service and exercise due diligence, not to indulge in unfair practices, not to make
misrepresentations, give best advice, not to divulge confidential information about the clients,
endeavor to ensure that true and adequate information is provided to investors. Finally merchant
bankers have to deal adequately with complaints from investors. Merchant bankers should not be a
party in respect of issue of securities, creation of false market, price rigging or manipulation or pass
price sensitive information, to abide by all rules, regulations, guidelines, resolutions issued by the
Government of Bangladesh from time to time.

INTERNATION CODE AND STANDARDS:

A draft code and standards to evolve a common set of principles, ethics and standards for investment
professionals has been developed for adoption by International Cooperation Committee of which
ICFAI is one of its members. The draft code covers code of ethics, standards of professional conduct,
relations with clients, independence and objectivity, fiduciary duties, investment recommendations
and actions, reasonable basis and representations, client confidentiality, prohibition against
misrepresentation.
Ethics: Investment professionals should observe high standards of honesty, integrity and fairness, act
in an ethical manner, exercise reasonable care and diligence and strive continuously to improve their
competence.
Professional Conduct: Investment professionals should comply with all laws, rules and regulations,
including International Code and Standards and should not knowingly participate or assist in their
violation.
Relations with Clients: Investment professionals should deal fairly with clients and prospects in
dissemination and changes in investment advice and investment decision.

Independence and Objectivity: Investment professionals have to exercise reasonable care and
objectivity and maintain independence in making and recommending investment decisions.

Fiduciary Duties: Investment professionals after determining the applicable fiduciary duty to their
clients should comply with such duty.

GENERAL OBLIGATIOS AND RESPONSIBILITY:

Maintenance of books of accounts, records and documents: merchant bankers have to keep and
maintain a copy of the balance sheet, a copy of the auditor’s report and a statement of financial
position, Merchant bankers should inform SEBI where the accounts, records and documents are
maintained.
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Merchant bankers have to furnish annually to SEBI copies of balance sheet, profit and loss account
and such other documents for any other preceding five accounting years as required.
Merchant bankers are required to submit SEBI half yearly working results with a view to monitor their
capital adequacy. Books, records and documents should be preserved for five years. Auditor’s report
should be acted upon within two months. Merchant bankers should execute an agreement with the
issuing company setting out their mutual rights, liabilities and obligations relating to such issue and in
particular to disclosures, allotment and refund.

FUNCTION PERFORMED BY MERCHANT BANK:

Merchant banks are considered as the original banking institutes that came into being during the
middle Ages. With the evolution of economic terms and practices, merchant banking services were
differentiated from those of an ordinary bank. Today, merchant banks are regarded as the banks of
corporate house and organizations.
Ordinary banks provide services to common people as well as organizations, but merchant banking
serve a number of needs and requirements of organizations and businesses. The fact that merchant
banks are the wholesale banks specifies the use of these banks for some important purposes.
It was hundreds of years ago that the Jews introduced the concept of merchant banking in Italy. The
two important functions they would perform included providing credit and underwriting. They
provided credit to the farmers in the beginning of the crop growing season so that the latter could grow
crops. Underwriting was done in the form of crop insurance that guaranteed the delivery of crops to
the buyer. The modern day merchant banking services include these two, along with many other major
functions.
Stock underwriting is counted among the most important functions of merchant banking. Utilizing this
facility, big enterprises hire the merchant banking services to raise capital from the stock market. A
merchant bank would decide the amount and price of the stock, along with the time at which the stock
would be issued.

STOCK UNDERWRITING:
This is one of the most common functions of a merchant bank. When owners of a large company want
to raise capital through investors on the stock market, they can acquire the services of a merchant bank
to take care of the job. The bank will determine the amount of stocks that are to be issued as well as
their price, and when to issue the new stock. The merchant bank will file all of the necessary
paperwork with the proper market division and may also market the stock. If there's a large stock
offering, a few merchant banks might work on the project together. However, one of the banks will
typically act as the head underwriter on the job.

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ISSUE MANAGEMENT:
In the function of issue management, a merchant Bank will help the capital market to increase the
supply of securities. The bank will help a private limited company convert into a public limited
company. The bank will do this by dealing with the proper authorities and by preparing a prospectus
for the public issue of debentures and shares. The bank will help collect the application money,
scrutinize the applications, as well as arrange for the allotment of the debentures and shares.
Issue management, through which a merchant bank assists the capital market to raise the number of
securities, is another important function of these banks. Some of the other merchant banking functions
include credit syndication, working capital financing, foreign currency financing, lease financing and
so on. It is clear that corporations and enterprises in an economy need these services to survive.
Some of the merchant banks set up in the beginning exist till date. Some of them include names like
Schroders and Warburgs. Merchant banks are popular with the name of investment banks in the
United States. Though, the actual investment banks differ from merchant banks in the way they offer
credit to the clients. In the United Kingdom, these banks are known as houses for accepting and
issuing.
Issue management, through which a merchant bank assists the capital market to raise the number of
securities, is another important function of these banks. Some of the other merchant banking functions
include credit syndication, working capital financing, foreign currency financing, leases financing and
so on. It is clear that corporations and enterprises in an economy need these services to survive.
The capital issue are managed are category-1 merchant banker and constitutes the most important
aspects of their services. The public issue of corporate securities involves marketing of capital issues
of new and existing companies, additional issues of existing companies including rights issue and
dilution of shares by letter of offer,. The public issues are managed by the involvement of various
agencies i.e. underwriters, brokers, bankers, advertising agency, printers, auditors, legal advisers,
registrar to the issue and merchant bankers providing specialized services to make the issue of the
success. However merchant banker is the agency at the apex level than that plan, coordinate and
control the entire issue activity and direct different agencies to contribute to the successful marketing
of securities. The procedure of the managing a public issue by a merchant banker is divided into two
phases, viz;
1. Pre-issue management
2. Post-issue management

Pre-Issue Management:-
Steps required to be taken to manage pre-issue activity is as follows:-
(1) Obtaining stock exchange approvals to memorandum and articles of associations.
(2) Taking action as per SEBI guide lines
(3) Finalizing the appointments of the following agencies:
 -Co-manager/Advisers to the issue
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  -Underwriters to the issue
 -Brokers to the issue
 -Bankers to the issue and refund Banker
 -Advertising agency
 -Printers and Registrar to the issue
(4) Advise the company to appoint auditors, legal advisers and broad base Board of Directors
(5) Drafting of prospectus
(6) Obtaining approvals of draft prospectus from the company’s legal advisers, underwriting financial
institutions/Banks
(7) Obtaining consent from parties and agencies acting for the issue to be enclosed with the
prospectus.
(8) Approval of prospectus from Securities and Exchange Board of India.
(9) Filing of the prospectus with Registrar of Companies.
(10) Making an application for enlistment with Stock Exchange along, with copy of the prospectus.
(11) Publicity of the issue with advertisement and conferences.
(12) Open subscription list.

Post-issue Management:-
Steps involved in post-issue management are:-
(1) To verify and confirm that the issue is subscribed to the extent of 90% including devolvement
from underwriters in case of under subscription
(2) To supervise and co-ordinate the allotment procedure of registrar to the issue as per prescribed
Stock Exchange guidelines
(3) To ensure issue of refund order, allotment letters / certificates within the prescribed time limit
of10 weeks after the closure of subscription list
(4) To report periodically to SEBI about the progress in the matters related to allotment and
refunds
(5) To ensure he listing of securities at Stock Exchanges.
(6) To attend the investors grievances regarding the public issue
The Merchant Bankers for managing public issue can negotiate a fee subject to a ceiling. This fee is to
be shared by all lead managers, advisers etc. 0.5% of the amount of public issues up to Rs.25 crores
0.2% of the amount exceeding Rs.25crores, if more than one Merchant bankers are managing the issue

Portfolio Services:
Another important function of a merchant bank is to supply a variety of portfolio management services
to their customers. Most merchant banks can also provide various other services to their clients. These
often include actions such as project counseling, mergers and acquisitions, and pre-investment studies.
Some of the other functions may be asset securitization, factoring, and Capital restructuring.
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Providing long-term loans is another important function of merchant banks. Ordinary banks issue loan
to small businesses and individuals, but they are not capable of handling the long-term loan needs of
big enterprises. A merchant bank performs this task and arrange for loans that help an enterprise to
start a big project. Merchant banks differentiate themselves from other banks by investing their own
capital in the companies of their clients. Apart from enterprises and multinational corporations, these
banks also provide loans to government bodies.
Portfolio services too are among the important merchant banking services. These services are fee
based and are provided to the corporations regarding business mergers and acquisitions, project
counseling and study of an investment vehicle. Corporations, in order to understand the pros and cons
and profits and losses associated with these situations, prefer to take advantage of the knowledge and
experience of the merchant banks.

Loan syndication:
Credit syndication also known as credit procurement and project finance services. The main task
involved in credit syndication is to raise to rupee and foreign currency loans with the banks and
financial institutions both in India and abroad. It also arranges the bridge finance and the resources for
cost escalations or cost Overruns.

Broadly, the credit syndications include the following acts;

a) Estimating the total costs
b) Drawing a financing plan for the total project cost-conforming to the requirements of the
promoters and their collaborators. Financial institutions and banks, government agencies and
underwriters.
c) Preparing loan application for financial assistance from term lenders/financial
institutions/banks and monitoring their progress including the pre-sanction negotiations.
d) Selecting the institutions and banks for participation in financing.
e) Follow-up of the term loan application with the financial institutions and banks and obtaining
the satisfaction for their respective share of participation.
f) Arranging bridge finance.
g) Assisting in completion of formalities for drawl of term finance sanctioned by institution
expediting legal documentation formalities drawing up inter-se agreements etc. prescribed by
the participating financial institutions and banks.
h) Assessing the working capital requirements.
Preparing the necessary application for a successful issue management the close liaison and
coordination with the various constituents of the public issue is an essential condition that warrants
full cooperation of all the parties affecting the cost and prospects of the issue. Merchant banks, acting
as ‘Manager’ to the issue has to settle the fee for Advocate/solicitors’ advice, accountants certification,
broker’s and banks charges, underwriters’ commission, printers’ charges and advertising and publicity
expenses and coordinates with syndicated merchant bankers and principal brokers, stock exchanges,

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etc. The responsibility for all this rests upon the merchant banker. If proper coordination is not done,
the success of the issue may be rendered unassured.

CORPORATE COUNSELING:
Corporate counseling denotes the advice provided by the Merchant Banking to the corporate unit to
ensure better corporate performance in terms of image building among investors, steady growth
through good working and appreciation in market value of its equity shares. The scope of corporate
counseling, capital restructuring and, portfolio management and the full range of financial engineering
includes venture capital, public issue management, and loan syndication, working capital, fixed
deposit, lease financing, acceptance credit, etc. However counseling is limited to only opinions and
suggestions and any detailed analysis would form part of a specific service.
The scope of corporate counseling is restricted to the explanations of concepts, procedures and laws to
be observed by the client company. Requirement of any action to be taken or compliance of statutory
formalities to be made for implementation of those suggestions would mean the demand for a specific
type of service other than corporate counseling being offered by the merchant bankers. An academic
analysis of corporate counseling present a different picture than that transpires from the literature of
the merchant bankers Firstly corporate counseling is the beginning of the merchant banking service
which every clients whether new or existing has got to avail a different matter whether a merchant
bank charges its client separately for rendering the corporate counseling service or includes the
element of fee in the other heads of services but from the angle of priority. Corporate counseling is
first in line of the services which a merchant banker offers and than other services.
Secondly the scope of the corporate counseling is very vast. Its coverage ranges from the managerial
economies, investments and financial management to Corporate Laws and the related legal aspects of
the organizational goals, locations factors, organizational size and operational scale, choice of product
and market survey, forecasting of product, cost reduction and cost analysis, allocation of resources,
investment decisions, capital management and expenditure control, pricing methods and marketing
strategy, etc.
Corporate laws should basically cover the legal aspects including the various legal formalities
involved in areas of corporate finance being raised from the financial institutions, banks and the
general pubic in the form of loan, new issues of equity or debentures respectively.

CHARACTERISTICS OF MERCHANT BANKING:

a. High proportion of decision makers as a percentage of total staff.
b. Quick decision process.
c. High density of information.
d. Intense contact with the environment.
e. Loose organizational structure.

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 f. Concentration of short and medium term engagements.
g. Emphasis on fee and commission income.
h. Innovative instead of repetitive operations.
i. Sophisticated services on a national and international level.
j. Low rate of profit distribution.
k. High liquidity ratio.

QUALITIES OF MERCHANT BANKING:

a. Ability to analyses
b. Abundant knowledge
c. Ability to build up relationship
d. Innovative approach
e. Integrity

ADVANTAGE OF MERCHANT BANKING:

a. Merchant banks perform functions that cannot be carried out by businesses on their own.
b. Merchant banks have access to traders, financial institutions, and markets that companies or
individuals could not possibly reach.
c. By using their skills and contacts, merchant banks can get the best possible deals for their
clients.

DISADVANTAGE OF MERCHANT BANKING:

a. Merchant banks are really only for large corporate customers, or extremely wealthy
smaller businesses owned by individual clients
b. Not all deals carried out by merchant banks meet with unqualified success

IMPORTANCES AND NEEDS OF MERCHANT BANKING IN BANGLADESH:

Important reasons for the growth of merchant banks has been development activities throughout the
country, exerting excess demand on the sources of fund for ever expanding industries and trade, thus
leaving a widening gap unabridged between the supply and demand of invisible funds. All financial
institutions had experienced constrain of resources to meet ever increasing demands for demands for
funds frame corporate sector enterprises. In such circumstances corporate sector had the only
alternative to avail of the capital market service for meeting their long term financial requirement
through capital issue of equity shares and debentures. Growing demand for funds put pressure on
capital market that enthused commercial banks, share brokers and financial consultancy firms to enter
into the field of merchant banking and share the growing capital market. As a result all the commercial

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banks in nationalized and public sector as well as in private sector have opened their merchant banking
windows and competing in this field.

Need for merchant banking is felt in the wake of huge public saving lying untapped. Merchant banker
can play highly significant role in mobilizing funds of savers to invisible channels assuring promising
returns on investment and thus can assist in meeting the widening demand for invisible funds for
economic activity. With growth of merchant banking profession corporate enterprises in both private
sectors would be able to raise required amount of funds annually from the capital market to meet the
growing requirement for funds for establishing new enterprises, undertaking expansion, modernization
and diversification of the existing enterprises. This reinforces the need for a vigorous role to be played
by merchant banking.

In view of multitude of enactment, rules and regulation, gridlines and offshoot press release
instructions brought out the government from time to time imposing statutory obligations upon the
corporate sector to comply with those entire requirement prescribed there in the need of a skilled
agency existed which could provide counseling in these matters in a package form. A merchant banker
with their skills updated information and knowledge provide this service to the corporate units and
advice them on such requirement to be complied with for raising funds from the capital market under
different enactment viz. companies act, income tax act, foreign exchange regulation act, securities
contracts corporate laws and regulations. Merchant bank advice the investors of the incentives
available in the form of tax relief, other statutory relaxation, good return on investment and capital
appreciation in such investment to motivate them to invest their savings securities of the corporate
sector. Thus merchant banks help industries and trade to rise and the investors to invest their saved
money in sound and healthy concern with confidence, safety and expectation for higher yields.
Finance is the backbone of business activities.
The following are some of the reasons why specialist merchant bank have a crucial role to play in
Bangladesh.

1. Growing complexity in rules and procedures of the government.

2. Growing industrialization and increase of technologically advanced industries.
3. Need for encouragement of small and medium industrialists, who require specialist services.
4. Need to develop backward areas and states which require different criteria.
5. Exploring the possibility of joint ventures abroad and foreign market.

Promoting the role of new issue market in mobilizing saving from where merchant banks function as
an independent wing or as subsidiary of various private/central governments/ state government
financial institution. Most of the financial institution in India is in public sector and therefore such
setup plays a role on the lines of governmental priorities and policies.

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MERCHANT BANKING RULES:
Merchant banking, often known as investment banking, is a specialty in the financial world that deals
with matching capital sources with businesses that need them. An investment banker then serves
a business in finding sources of capital for a fee. Alternatively, an investment banker can serve a group
of investors by finding businesses that need a capital infusion. The main regulatory group for this
specialty is the Financial Industry Regulatory Authority (FINRA).

Conflicts-
One of the main issues that FINRA concerns itself with is conflict of interest. In this area of finance, a
typical conflict would be for a banker or broker to pull financing into a business of which she is a part
owner or otherwise profits from. Any conflict of interest of this type must be disclosed to the client
and often to FINRA itself.
Licensing-
Another major concern of FINRA is unlicensed brokers serving as "finders," or those searching for
investors interested in a specific form of investment. As of 2008, FINRA has been cracking down on
these unlicensed brokers acting in the capacity of investment bankers. Anyone serving as an
investment banker must register with FINRA and pass their examinations. Bankers must not
exaggerate their track record, assets or experience. This is a form of fraud.
Confidentiality-
Merchant bankers are in a unique position to know where money is both going and coming from. This
means that any merchant banker has valuable information as to where new infusions of cash are going.
This information is no doubt valuable to many in the business community. As a result of this position
of power due to information, the confidentiality of investors or businesses (whoever is paying the
banker) must be maintained. Investment bankers cannot direct money to a specific enterprise, and then
go tell others to bet on that enterprise. This is a form of "insider trading."
Training-
FINRA maintains strict standards of banker training and certification. There is a 6-month waiting
period for all those who seek to enter the field, and a series of examinations that FINRA administers to
prove the ability of future bankers in this area. Those who have not completed the 6-month period
after passing exams and engage in merchant banking activities as a fully registered banker are liable to
serious penalties including fines or suspensions. As a result, firms must identify who their trainees are
and what specifically they will be doing during their grace period (they may not engage in merchant
banking during this times.)

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ACTIVITIES OF MERCHANT BANKERS:
A merchant banker can undertake only those activities which are relating to securities market and
which do not require registration/have been granted exemption from registration as an NBFC from
RBI. In particular, a merchant banker may undertake the following activities:

 Managing of public issue of securities.

 Underwriting connected with the aforesaid public issue management business.
 Managing advising on international offerings of. GDR, ADR, bonds and other instruments.
 Private placement of securities.
 Primary or satellite dealership of government securities.
 Corporate advisory services related to securities market e.g. takeovers, acquisitions,
disinvestment.
 Stock-broking.
 Advisory services for projects.
 Syndication of rupee term loans.
 International financial advisory services.

ROLE OF MERCHANT BANKER IN BANGLADESH:

The role of merchant banker is dynamic in the wake of diverse nature of merchant banking services.
Merchant banker is dynamism lies in promptly attending to the corporate problems and suggests ways
and means to solve it. The nature of merchant banking services is development oriented and
promotional to help the industry and trade to grow and survive. Merchant banker is, therefore,
dedicated to achieve this objective through his dynamism. He is always awake to renew his skills,
develop expertise in new areas so as to equip himself with the knowledge and techniques to deal with
emerging new problems of corporate business world. He has to keep pace with the changing
environment where government rules, regulations and politics affecting business conditions frequently
change; where science and technology create new innovations in production processes of industries
envisaging immediate renovations, diversifications, modernizations or replacements of existing plant
and machinery or other equipments putting new demands for finances and necessitating overhauling of
the capital structure of the firms. Merchant banker has to think and devise new instruments of
financing industrial projects.
Merchant banking is typically a specialized means of financing start-up ventures. As banks lend to
new businesses and, therefore, have a personal stake in their performance, certain sectors in banking
begin to specialize in specific areas, such as biotechnology, transportation or chemicals.

i. Features: While most types of banks do perform some merchant services, merchant banking,
specifically, is about partnering with small businesses in a specialized field. A merchant bank
with connections in chemicals, for example, is an ideal place for a young or struggling chemical

19 | P a g e
 firm to go to for financing. The bank knows the latest developments in the field as well as where
suppliers, financing and recent research are available.
ii. Benifits: The merchant bank facilitates targeted trade and investment, and is typically field-
specific. One way to view how merchant banking differs from other types of commercial banking
is not to consider the merchant bank as a lender, but as a "partner" and adviser within a specific
field. Merchant banks are close managers of investments in their areas of expertise. Merchant
banks seek out financing options and give advice to small businesses. Since the bank is typically
specialized, it is well placed to guide businesses, especially new ones.
iii. Functions: As banks lend to businesses, they become experts in their clients' fields. This makes
the emerging merchant banker an ideal partner. The merchant banker is in change of directing
investment, finding new sources of capital and other businesses to partner with. A merchant bank
functions as a partner with strategic connections to help businesses thrive.
iv. Significance: The very existence of merchant banking shows the need for specialized investment
information. This is merchant banking's main role. While many commercial banks may be
satisfied with standard business plans and market research, the merchant bank is an active player
in the field itself. The seasoned merchant banker knows precisely where strategic assets are
located, and which firms and strategies to avoid. With a merchant banker, a small businessperson
is hiring an expert partner with a long-term interest in the field. The real significance here is that
using a merchant bank reduces risks for a new firm.
v. Effects: Merchant banking targets and channels investment in areas that experience has shown to
work. The merchant banker, with his expertise in specific markets, already knows what has
worked in the past as well as the best targets for the future. Therefore, the merchant banker can
become the chief adviser for a start-up business, moving the new firm's money, as well as its own,
into productive assets to give both parties a strategic edge.

MERCHANT BANKING PROJECT:

Merchant banking projects are primarily designed to meet the needs of corporate clients. Projects are
typically designed for use within individual institutions or they can be more expansive when banks
partner with other companies. Projects help merchant banks increase access to capital, build
investment portfolios and enlarge the range of banking client relationships.
Professional Consulting:
Many merchant banks offer services in professional consulting. These services help corporate clients
in early stages of research and product design. As projects develop and expand, merchant banks
counsel clients on how to commercialize the product and bring it to market. According to Burrill and
Company, professional consulting specifically assists in areas related to preclinical product trials,
cross promotion schemes and licensing.

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Negotiations and Transactions:
Merchant banks also aid clients in negotiations and transactions. According to Capital Corp. Merchant
Banking, negotiation projects are common with business mergers and acquisitions. These processes
often include preparing marketing plans, viability data and valuation reports. Merchant banks also
establish and negotiate transaction opportunities while evaluating risks between public, private and
corporate clients. These negotiations guide clients along the process of selling finished product and
adjusting the size of a company.
Middle-Market Client Projects:
Middle-market client projects are a service provided by merchant banks. Corporate customers are
primary clients of merchant banks but small business owners are serviced as well. These "middle-
market" client projects include the establishing of funding packages. Merchant banks often do this by
securing capital through international partners. According to Capital Corp. Merchant Banking, these
partners work with merchant banks providing equity investments and debt financing. Funding
packaging projects help new and established companies equally.

METHODOLOGY:
Certain methods and techniques were utilized to collect data for this report. Both primary and
secondary sources were chosen as effective means of collecting data relevant for this report.
Methods
 Personal observation
 Personal Interview
 File inspection
 Bank’s other published information.
 Website of Merchant banking Internal Records
 Head Office and Bangladesh Bank circulars
 Head Office Orders
 Office Notes files
 Bangladesh Bank guidelines
 Bangladesh Bank circulars.
 Library Sources:
 Annual Report of Merchant Banks
 Journal, magazines on Foreign Exchange Business
 Printing material’s of bank

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DATA INSTRUMENTATION:
1. Primary source:
 Opinion Survey
 Group interview,
 Face to face interview,
 Questionnaire survey etc

2. Secondary source:
 Library Study
 Annual Report of the Merchant Bank.
 Different publications on Merchant Bank.
 Different Web side of the Merchant Bank.
 Collecting information through books, reports, journals etc
DATA ANALYSIS:
I myself started field work and data collection took about four weeks time. After that data checking,
compilation and analysis took much time since then because of commencement of community
mobilization work in the banker sector to starting meetings simultaneously. I have also visited web site
and relevant document of Merchant bank on its problems and protective’s.
For this report almost all the data are collected through secondary sources. For getting the information
I had to see the annual reports, books, quarterly report which they prepare to submit in the head office
and also in Bangladesh Bank. There are some data collected from the primary source face to face
interview.
Interview was the basic technique that was employed to collect primary data from people within the
organization. For the procedure of different banking operations, I had observed the operations.
On the other hand, secondary sources were used to collect data regarding the company’s performance
since its inception. Publications and database within the organization helped me to gather data about
the organization. In addition, further more the secondary sources of information are the different
annual report kept in the bank. Most of the information was collected from internet.
After the data entry work, the analysis work was done. At this stage, researcher that means I was
analyzed the data and draft the report. Data were analyzed to prepare basic statistical tables in order to
explain the objectives of the survey. Finally, a full study report has submitted.

RESULTS:
Merchant Banking sectors no more depends on only on a traditional method of banking. In this
competitive world banking sector has stretched its wings wide enough to cover any kind of financial
services. Not only from the local banks but also from the foreign banks, the banks of today face a
tough competition. The major task of banks for banks to survive in this competitive environment is by
managing its assets and liabilities in an efficient way. To make the assets especially loan and advances

22 | P a g e
banks must have to more cautious and otherwise these asset will became a burden for the bank. To
have fruitful investment bank must have to do the credit appraisal perfectly. Otherwise this loan
default culture will never end.
I have seen that the working of merchant banking agencies and units formed subsequently to offer
merchant banking services has shown that merchant banks are rendering diverse services and
functions, such as organizing and extending finance for investment in projects, assistance in financial
management, acceptance house business, raising Eurodollar loans and issue of foreign currency bonds,
financing of local authorities, financing export of capital goods, ships, hydropower installation,
railways, financing of hire-purchase transactions, equipment leasing, mergers and takeovers, valuation
of assets, investment management and promotion of investment trusts. Not all merchant banks offer all
these services. Different merchant bankers specialize in different services. Merchant banking may
cover a wide range of financial activities and in the process include a number of different financial
institutions. In the last 35 years new services and functions apart from issue management have been
added.
I have seen that some Merchant Bank follows the same practice and procedure which is followed by
its elders. But one thing should be mentioned new loan reformation have slightly changed the
appraisal procedure. This Lending Risk Analysis makes the procedure better than previous.
I should say that the standard appraisal procedure is nearly perfect. But Merchant banks have to
practice this procedure rather following their own procedure. If bank follow the standard appraisal
hopefully the chances of failure will be decline in future.

RECOMMENDATION:
Significant recommendations of the study:
1. Regulation requiring all issues to be managed and certified by a Merchant Banker could be
relaxed in case of rights offerings.
2. The set of issues, which are placed through a public offering, will include all high and low
quality issues, will be placed through a rights offering.
3. For the set of issues, which are placed through a public offering, further screening can be
achieved by making underwriting optional.
4. For the screening mechanism in the preceding recommendation to be effective, the current 90%
subscription rule should be strengthened.
5. SEC objectives of improving disclosure of private information and investor protection can be
achieved.
6. More training should be conducted for the bankers to improve their analytical ability and
professional standard and other tools and techniques in selecting the borrowers and analyzing the
loan proposals.
7. Authority should be delegated to the lower level with adequate measures for the necessary
control and follow-up for making the lending decision and recovery.
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 8. One proper standard procedure should be developed for all types of clients and no interpersonal
relationship should be involved in approves a loan.
9. Bank should fixed-up specific types of client strategy according to the different character of
client.
10. Interest income occupies the major part of the total earnings of a bank and bank’s profitability
mainly depends on interest earning capacity, so bank should establish a research and
development cell for the purpose of lending analysis and recovery of loans.

CONCLUSION:

The merchant banker plays a vital role in channelizing the financial surplus of the society into
productive investment avenues. Hence before selecting a merchant banker, one must decide, the
services for which he is being approached. Selecting the right intermediary who has the necessary
skills to meet the requirements of the client will ensure success. It can be said that this project helped
me to understand every details about Merchant Banking and in future how it’s going to get emerged in
the Bangladesh economy. Hence, Merchant Banking can be considered as essential financial body in
Bangladeshi financial system. Market development is predicted on a sound, fair and transparent
regulatory framework. To sustain the growth of the market and crystallize the growing awareness and
interest into a committed, discerning and growing awareness and interest into an essential to remove
the trading malpractice and structural inadequacies prevailing in the market, and provide the investors
an organized, well regulated market in Bangladesh.

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B. Tables:

LISTED MERCHANT BANK IN BANGLADESH

1.Industrial Development Leasing Company of Bangladesh Ltd
2.Uttara Finance and Investment Limited
3. Banco Trans World (Bangladesh) Limited,
4. Fidelity Assets and Securities Company Ltd.,
5. N D B Capital Ltd (formerly Capital Market Services Limited),
6. Bay Leasing and Investment Limited,
7. Swadesh Investment Management Limited, House
8. LankaBangla Finance Limited,
9. Grameen Capital Management Limited
10. South Asia Capital Ltd.,
11. Prime Finance & Investment Ltd
12. EC Securities Ltd
13. Mercantile Securities Limited,
14. GSP Finance Company (Bangladesh) Ltd.
15. Bangladesh Mutual Securities Ltd
16. BRAC EPL Investment Ltd
17. Prime Bank Limited
18. Arab Bangladesh Bank Ltd
19. ICB Capital Management Ltd
20. Export Import Bank of Bangladesh Ltd. (EXIM Bank)
21. Union Capital Limited
22. AAA Consultants and Financial Advisers
23. Alliance Financial Services Ltd
24. Business and Management Co. Ltd. House
25. Citigroup Global Markets Bangladesh Private Limited
26. Trust Bank Ltd
27. Janata Bank Limited
28. Sonali Bank
30. Southeast Bank Ltd
31. Standard Bank Ltd
32. Banco Finance & Investment Limited
33. Lanka Bangla Investment Ltd
34.Agrani Bank Limited
35.

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REFERENCES-

A. BOOKS:
1. H.R.Machiraju-Merchant Banking-Fourth Edition-New Age International Publishers.
2. Huq, M. Azizul. 1996. “Merchant Banking in Bangladesh with a brief Overview of Operational
Problems”, Bank Parikrama, Vol. XXI, No. 1-2, Mar-Jun 1996.
3. Ministry of Finance. 1999. Banks and Financial Institution’s Activities, Dhaka.
4. Peter Rose- Commercial Bank Management
5. L. R. Chowdhury- A Text Book For Bankers Advance.
6. Sannamat, M. A. H. (2004), “Merchant Banks of Bangladesh: Prospects and Problems”,
published in BLFCA Year Book 2004.
7. Jamal, S.H. (2004), “Banking and Leasing Complementary to Each Other”, published in
BLFCA Year Book 2004
8. Barai, M. K., Saha, S., and Mamun, A. A (1999), “Progress and Prospects of Non-Bank
Financial
9. Islam, Muhammad Muzadihul. 1991. “A Critique of Murabaha Mode of Financing by Islamic
Banks”, Finance and Banking.

B. Websites:
 http://www.google.com/
 http://www.yahoo.com/
 http://en. Wikipedia. org/w iki
 http://www.banglapedia.org
 http://www.thefinancialexpress-bd.com/
 http://www.secbd.org/addressmerchant.html
 http://www.mbaknol.com/business-finance/introduction-to-merchant-banking/
 http://www.ehow.com/about_6630307_importance-merchant-banking.html
 http://www.articlesbase.com/finance-articles
 http://wiki.answers.com/Q/What_is_the_procedures_of_merchant_banking

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