BANKING AFFAIRS

Detailed explanation-1: -The management of securities of the corporate sector offered to the public on a regular basis, and existing shareholders on a rights basis, is known as issue management. Issue management is an important function for merchant bankers and lead managers.

Detailed explanation-2: -(v)Issue Management: Management of issues refers to effective marketing of corporate securities viz., equity shares, preference shares and debentures or bonds by offering them to public. Merchant banks act as intermediary whose main job is to transfer capital from those who own it to those who need it.

Detailed explanation-3: -Most definitions of issues management will specify steps and stages in the process, including (1) environmental scanning, (2) issue identification, (2) issue impact assessment and prioritization, (3) development of objective-driven strategy, (4) action and (5) evaluation.

Detailed explanation-4: -The primary objectives of merchant banking include providing funds to companies, underwriting, managing their portfolios, offering corporate advisory, and managing corporate issues.

Detailed explanation-5: -To inform and educate the applicant about capital market rules & regulations, the IPO process and post listing requirements. The merchant banker would be closely associated in preparing the new applicant’s prospectus and other related listing documents.