Roles Of Investment Banking Companies In India

By Author: Avendus
Total Articles: 131
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Investment banks are financial institutions that offer various financial and banking services to its clients. These services could involve buying and selling of assets, conducting research, providing advice regarding mergers and acquisitions, etc. During their course of its action, full-service investment banking companies in India take up several roles in order to provide their clients with the best possible service.
Traders: Investment banks often act as traders of securities. Their work involves buying and selling of securities on behalf of their clients, directly and indirectly. This trading could be done between firms, other investment banks or the stock market itself.
Researchers: Investment bankers also take up the job of a researcher. They study their clients’ financial history, the current financial environment in the country, possible causes of change in the environment along with situations that may be considered risky. Simultaneously, they maintain an extensive database of all this information for future use and further planning.
Planners: ...
... An extremely crucial role taken up by investment banking firms is that of a planner. Once they are done researching about the client and the market, they channel their energies towards creating an action plan. This would involve specifying financial objectives for their and chalking out a basic plan of action to achieve them. They would then investigate strategies and tactics along with tools and indices that could possibly help achieve said objectives.
Wealth management firms: Investment banks often act as wealth managers as well. According to the need of the hour, they decide the amount of liquidity that is required by the client. Based on this, they restructure the whole firm in terms of equity and shares. They can choose to issue more shares or even buy back some according to the amount of liquidity they prefer for the client at the time.
Custodians: All the efforts made by an investment bank are targeted towards the betterment of the client. It is their job to prevent any losses in situations of financial turmoil and provide a substantial buffer in situations of unforeseen crisis. All top investment banking companies in India focus on preventing losses and creating buffers, this is because the Indian financial market is highly unstable and prone to extreme changes.
Advisors: Another aspect of investment banking is taking the advisory stance. Acting as advisors, investment bankers provide their clients with suggestions regarding acquisitions and mergers, investment and disinvestment.
Asset management firms: Investment banks usually take up the role of asset management companies as well. They monitor the assets owned by the client, check efficiency and recommend changes. These could include buying and selling of assets.
While finding the perfect investment bank for you, you should always take into consideration the kind of services they offer and the amount of control you are willing to share. You can choose to have a single firm handle all the above-mentioned services for you, however, you always have the option of hiring a specialised boutique for a service. At the end of the day, what matters is that your investments are profitable, your financial standing is strong, you are aware of your financial environment and can sustain through market anomalies.