BANKING AFFAIRS

Detailed explanation-1: -In 1973, SBI started the merchant banking and it was followed by ICICI. SBI capital market was set up in August 1986 as a fully-fledged merchant banker. Between 1974 and 1985, the merchant banker has promoted lot of companies. However, they were brought under the control of SEBI in 1992.

Detailed explanation-2: -On the recommendation of Banking commission, State Bank of India(SBI) became the first Indian Bank to start with the merchant banking activities in 1972-73. The other banks that followed the SBI were Central Bank of India, Bank of India, Syndicate Bank started merchant banking services in 1977.

Detailed explanation-3: -The State Bank of India was the first Indian commercial bank to set up a separate Merchant Banking Division in 1973, followed by ICICI followed it in 1974. The merchant bankers can be categorized into four types on the basis of activities permitted to be carried by them : 1. .

Detailed explanation-4: -In India, merchant Banking firms were first introduced in the year 1967 by the Grindlays bank. Currently, there are more than 200 SEBI registered merchant banks in India.