Functions of Investment Bank

 Investment Banking Types

Investment banking operations are divided into three categories:

Working directly with clients or trading on behalf of an individual or business customer puts front office employees in direct contact with the public. Jobs in sales, trading, research, and M&A are all regarded as front office positions.

Like their name suggests, middle office activities take place halfway between the investment bank's client-facing activities and its more administrative tasks. Risk management and compliance are among these tasks.

The investment bank's back offices are located distant from the trading floors. Despite not being as flashy, they are just as crucial to the company's operations. Settlements, payment processing, technical support, and human resources are all examples of back office positions.

Principles of Investment Banking - B.Com/BBA Syllabus

 Investment Banking Basics

Introduction to Investment Banking: 

Investment banking services, investment banking services by kind of investment bank, merchant banking services Issue Management; Pre-issue and post-issue duties; Shifting Investment Banking Environment SEBI norms for capital market regulation.

SEBI issuance and Listing of Debt Securities Regulation 2008 apply to merchant bankers, brokers, sub brokers, intermediaries, and portfolio managers.

A financial organization known as an investment bank helps people, businesses, and governments raise cash by underwriting securities or serving as the client's agent in the Assurance of Securities (or both).

Types of Investment Banks

Depending on what they do, investment banks can be divided into two main categories. These could be more appropriately referred to as investment banking branches of activity. 

1. Sell side: This includes activities like trading securities as well as market-making, transaction facilitation, and the marketing and promotion of securities through research and underwriting.

2. Buy side: Describes organizations that offer direction and advise with regard to purchasing investing services. Insurance firms, hedge funds, unit trusts, mutual funds, and private equity funds are typical buy-side players.

What is Commercial Bank

 

  What do you mean by Commercial Bank?

Commercial banks are basically involved in profitable business. The basic function of this bank is to accept deposit from the public and use it to provide loans and advances to the needy people by charging certain interest rate, henceforth making profit.

The Commercial Banks are further classified as per the figure above, but the number of banks has been changed in 2019 when the big decision by the govt came in: yes' Merging of banks made super changes in banking sector. Soon the merging list will be added here.

a. Public Sector Banks:

                                    The public sector Bank means the bank which have more than 50% of share is from govt side. In simple words they are the larger banks prevailing in the market and most trust able for the public because of governmental interference. the major bank of public sector is SBI (State Bank of India)

b. Private Sector Banks:

                                    Private banks are established by private entities for making profit. but banks have to be registered as bank under banking Act 1949. though there are few additions were amended into banking regulations but this basic Act is necessary for any bank to qualify. these banks are more profitable as they charge high interest rate than public sector banks.

c. Foreign Banks:

                        these banks are specifically made for the purpose of business persons. separate rules are made by RBI to regulate this bank. It is a type of international bank who are bound to follow home as well as host country. Foreign Banks are present in India either as representative offices or as branches.