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Top 10 Investment Banking Companies in India and Their Operations

Posted on by Imarticus Learning

The need for investment banking jobs has increased along with the growth of investment banking companies in India over the past several decades. Due to the rapidly expanding Indian economy and the entrance of international corporations, investment banks are crucial for managing transactions, providing money for projects, and supporting capital market activities.

The most prominent investment banking organisations, both locally and abroad, typically have access to the best personnel in the industry. They promise to compensate their employees appropriately as a result, providing some of the highest salaries in India. We will be concentrating on the top 10 investment banking companies in India in this article.

Global Investment Banking Companies in India

Global investment banks are well-represented in India. Some of the famous global investment banking companies in India are:

  • J.P. Morgan- Prominent for its expertise in securities markets, financial advice solutions, and mergers and acquisitions, J.P. Morgan maintains many locations around India. Founded in 2000, J.P. Morgan’s main office is located in New York, USA.
  • Goldman Sachs- This global giant is one of the best investment banking companies in India. They provide every service related to investing, such as financial advice, trading securities, and asset management. The headquarters of Goldman Sachs are located in New York, USA, and the company was founded in 1869. 
  • Morgan Stanley- Morgan Stanley, one of the top investment banking companies in India, has made a big name for itself by putting mergers and acquisitions, raising funding, and financial restructuring first. The main office of Morgan Stanley is located in New York, USA, where it was founded in 1935. 
  • Bank of America Merill Lynch- Bank of America Merrill Lynch is a major player in the Indian market, offering services related to mergers and acquisitions, capital markets, and corporate financing. Founded in 2009, Bank of America Merill Lynch is headquartered in North Carolina, USA.

Domestic Investment Banking Firms in India

There are several domestic investment banking firms in India. Some of the famous ones are:

  • ICICI Securities- ICICI Securities is an affiliate of ICICI Bank and offers services such as corporate equity investments, equity capital sectors, and mergers & acquisitions. With its headquarters located in Mumbai, India, ICICI Securities was founded in 1995.
  • HDFC Bank- One of the largest investment banking companies in India, HDFC Bank offers a variety of services such as financial market operations, project finance and advisory services. Mumbai, India is home to HDFC Bank’s headquarters, which were founded in 1994.
  • Kotak Investment Banking- The Kotak Mahindra Group’s Kotak Investment Banking branch specialises in securities markets, private equity transactions, and mergers and acquisitions. Mumbai, India is home to Kotak Investment Banking’s headquarters, which was founded in 2006.

Boutique Investment Banking Firms in India

Boutique Investment Banking Firms in India provide specialised services and cater to certain markets. Some prominent boutique investment banking companies in India are:

  1. Avendus Capital- Presenced as one of the top investment banking companies in India, Avendus Capital focuses on cross-border mergers & acquisitions and private equity advice. Mumbai, India is home to Avendus Capital’s headquarters, which was founded in 1999.
  2. o3 Capital- One of the best investment banking companies in India, this boutique firm specialises in private equity agreements, mergers and acquisitions, and funding for mid-market companies. Mumbai, India is home to o3 Capital’s headquarters, which was founded in 2007. 
  3. Spark Capital- Spark Capital, one of the prominent investment banking companies in India offers specialty banking and investment management services with an emphasis on the fields of technology, healthcare, and finance. Chennai, India is home to Spark Capital’s headquarters, which were founded in 2001.

Suggestions for Cracking Investment Banking Jobs

There are a lot of investment banking companies in India and getting a job in any one of them can be a real deal-breaker! It might sound quite challenging, but here are some tips that can help aspirants crack investment banking jobs:

  • Have in-depth knowledge of finance, business management, and current economic trends.
  • Be up-to-date with industry professionals and attend seminars to increase networking.
  • Focus on key skills like analytical thinking and Excel.
  • Enrol in an investment banking course.

Summing Up

We have focused on some of the best global investment companies in India, domestic investing firms in India, and boutique investment banking firms in India in this blog. With the demand for investment banking companies in India increasing, enrolling in an investment banking course will be helpful for aspiring professionals. By studying the organisational structures of the top investment banking companies in India, and also focusing on their work culture and potential for promotion, an aspirant would gain the confidence to start working in this field.

Networking, and being aware of recent market trends are the keys to success in investment banking. Enrol in the Certified Investment Banking Operations Professional (CIBOP™)  by Imarticus to launch a career in investment banking.

Frequently Asked Questions

  • How do venture capital and private equity companies work alongside investment banks?  

Venture capital and private equity businesses are not the same as investment banks. While venture capital firms spend their cash in independently operated enterprises, investment banks serve as intermediaries or facilitators between publicly listed companies and other financiers.

  • What is the role of investment banks in India’s economy?
    Investment banking companies in India help organisations and governments raise capital by arranging transactions with financiers and other businesses. This is referred to as increasing market liquidity. The main way that liquidity helps the economy is by providing an infusion of capital.
  • What is the meaning of Mergers & Acquisitions?
    In general, the phrases “merger” and “acquisition” relate to the joining of two businesses. In an acquisition, two businesses buy one another; the acquired business remains controlled by the acquiring company and does not alter its name or organisational structure. A merger unites two businesses, which typically adopt an identical name.
  • How do investment banks earn?
    Typically, investment banks profit from the act of bringing together consumers and sellers in various marketplaces. Typically, fees are assessed on transactions based on the lender’s size and reputation. Banks will occasionally charge for their underwriting assistance.

Fixed Income Securities: Corporate Bonds, Treasury Bonds, Municipal Bonds, etc., and Other Securities

Posted on by Imarticus Learning

Fixed-income securities, including corporate, government, and municipal bonds, are the cornerstone of conservative investing, providing stability and generating income. We emphasise the extreme importance of diversifying investment portfolios. Diversifying into different asset classes, such as fixed-income securities, is a good strategy and way to reduce risk and achieve long-term financial goals.

To build a career in investment banking, read this insightful article and learn about the best investment banking certification! This comprehensive guide will first look at fixed income and explain their nature and meaning.

Corporate Bonds

Corporate bonds are debt securities issued by companies to raise capital. These bonds have different characteristics, such as a fixed interest rate called a coupon and a predetermined term for repayment of the principal. They are considered relatively low-risk compared to other fixed-income securities.

Commercial loans also offer portfolio diversification opportunities. However, they involve risks, especially credit risk, in which the issuer may not make interest payments or principal repayments. Assessing credit ratings, industry trends, and a company’s financial condition is critical before investing. 

Treasury Bonds 

Treasury Bonds are an important debt instrument. These are government bonds that are known for their safety and are backed by the full faith and credit of the government. These bonds are distinguished by their long-term maturity period. The longer period makes them an attractive option for investors with long-term financial goals who are not looking forward to immediate liquidity needs. 

These play a major role in financial markets as they influence interest rates and act as benchmarks against other interest-bearing investments, thereby making them a cornerstone of investment portfolios and financial planning.

Municipal Bonds

Municipal loans play a crucial role in financing community development as a whole. One of the important advantages of municipal bonds is their benefits. The biggest advantage of interest income that is earned on most municipal bonds is that it is exempted from income tax.

One should be aware of the risks associated with municipal bonds. Investors should assess the issuer’s credit status based on information obtained from credit ratings and financial statements. Therefore, proper diversification of different municipalities and maturity can help reduce risks. A comprehensive banking course can help individuals understand this better. 

Risks Associated with Fixed-income Securities

Understanding and managing these risks is critical when including fixed income in your investment portfolio. One must take a banking and finance course to know more about associated risks. Diversification and thoughtful risk assessment can help reduce potential losses.

  • Interest rate risk: This risk arises when interest rates in the larger economy fluctuate. As interest rates rise, the market value of current fixed-income instruments falls, affecting bond prices. Bond prices often climb when interest rates decrease.
  • Liquidity risk: Liquidity risk arises when buying or selling a fixed-income security at the desired price and at the desired time, if it is difficult. Less liquid bonds may require investors to sell at a discount, causing potential losses. 
  • Inflation risk: Inflation weakens the purchasing power of interest-bearing investments, especially if the accumulated interest does not keep pace with price increases. Investors may experience reduced real returns in an inflationary environment. 

Building a Diverse Portfolio

For a career in banking and finance, one should know how to build a diverse portfolio of assets. Diversification has many benefits for you as an investor, but one of the biggest is that it can improve your potential returns and stabilise your results. By owning multiple assets that perform differently, you reduce the overall risk in your portfolio so that no investment hurts you too much.

Because assets perform differently in different economic times, diversification reduces your returns. While stocks may fall, bonds may rise and CDs may remain stable. If you hold a different amount of each asset, you get a weighted average of the performance of those assets.

While you won’t make amazing returns owning just one rocket ship, you won’t suffer its ups and downs either. Although diversification can reduce risks, it cannot eliminate all risks. Diversification reduces asset-specific risk – that is, the risk of owning too much of one stock (such as Amazon) or stocks in general relative to other investments. However, this does not eliminate market risk, which is the risk of owning this type of asset. One should go in for investment banking courses online to learn about more such insights into trading.

Current Trends in the Fixed-income Markets

Current interest rate market trends and forecasts are impacted by a variety of variables and are relevant to investors. Fixed-income assets are heavily influenced by economic variables such as interest rates, inflation forecasts, and creditworthiness.

Central banks play an important role in these markets, and their policies, such as quantitative easing and interest rate changes, have a large influence on bond rates and market dynamics. Investors are increasingly exploring creative techniques such as ESG (Environmental, Social, and Governance) bonds and sustainable investing to match their portfolios with social and environmental goals.

Furthermore, demand for high-yield fixed-income products, the introduction of digital bonds, and the expansion of fixed-income exchange-traded funds (ETFs) are altering the market. Keeping up with these emerging trends is important for investors who want to effectively navigate the fixed-income market and adapt to changing economic environments. 

Conclusion

The Certified Investment Banking Operations Professional Course from Imarticus Learning is a valuable investment for aspiring financial professionals. This investment banking course helps students develop the skills and knowledge that they need to be successful in the investment banking domain. It focuses on real-world applications and provides students with the opportunity to practise the programs in a hands-on environment. It increases career opportunities and instils confidence and competence in participants. Choose Imarticus Learning for such an investment banker course for a strategic step towards a successful and fulfilling career in finance!

Stages Involved in Mergers And Best Practices

Posted on by Imarticus Learning

Mergers and acquisitions have become one of the most popular ways of expanding a business. Knowing where to invest and to merge with which company is a crucial aspect of mergers, which requires a lot of planning, preparation and strategic evaluation. The major objective behind mergers is that businesses share the same strategy of cost optimisation, business expansion, market growth and earning a larger market share.

The process of consolidating the assets of two or more business houses or the coming of two or more companies together is known as merger and acquisition. It is a business strategy that results in forming one single entity by acquiring or merging more than one company. It is a form of investment decision that the company’s shareholders take to increase their market share. 

Merger and acquisition is an integral aspect of investment banking. One can gain a deeper understanding of mergers and acquisitions by enrolling on an insightful investment banking course. Read on to imbibe a profound understanding of planning and preparing for mergers, the various stages involved in a merger and best practices.

Stages of a Merger and Acquisition Transaction

Merger and acquisition transactions can be different due to their dynamic nature. Some transactions can be simple and open-ended, whereas some can involve certain complicated turns of events. Merger transactions vary depending on their nature, size, number of employees, regulatory implications, international commitments, fiscal considerations and so on.

However, all merger and acquisition transactions follow a basic process involving 5 major steps. The degree of complexity in these stages may differ depending on a particular merger or acquisition. 

Assessment and preliminary review

The first and foremost step to begin a merger and acquisition transaction is to prepare a memorandum of information. This has to be done even before a purchaser is found for the entity or company that is up for merger. Generally, the vendor draws the information memo and broadcast set to evaluate market interest. This helps the vendor to ascertain suitable buyers willing to buy a portion of a business or the entire business at the highest possible price.

The information memorandum contains all the relevant information necessary for the purchaser to decide whether to buy the company or not. However, it does not reveal any sensitive or confidential information related to the business. To gain access to confidential company data, parties have to indulge in a non-disclosure agreement (NDA) to protect sensitive information concerning the business.

Negotiation and letter of intent

The next step is negotiation, followed by due diligence when there exists more than one suitable purchaser. However, in an event where there is only one buyer in the running, it is routine for the parties to start discussing certain matters prior to the merger’s contractual phase. This can be done either before or at the time of commencement of the due diligence process.

The important matters of concern in this phase can be listed as follows:

  • Competition law implications and findings, and if any of it requires pre-clearance from the office.
  • Matters related to employment law considerations.
  • Important matters related to various licenses.
  • Aspects of fiscal implications.
  • Tracking of market conditions.

Additionally, both the purchaser and vendor must put out certain terms and conditions for the merger to be reviewed by both parties. Such terms are contained in a letter of intent, and the parties have to agree to continue with the merger. 

To gain greater insight into the same, one may consider taking a certification in investment banking.

Due diligence

Carrying out a due diligence exercise on the target company is common in an M&A. Generally, where there is only one buyer, the advisors chosen by the purchaser carry out the due diligence exercise. The seller also conducts a due diligence exercise for multiple reasons, such as for facilitating the sale of the company shares, finding any potential problems that may act as a barrier to the sale, searching for any warranties, etc.

The purpose of due diligence is to cover legal, financial and fiscal areas, ensure fair pricing and spot any potential risks that may arise out of a particular merger and acquisition transaction. It takes into account a variety of legal aspects and determines whether this merger will result in any legal ramifications or not.

Negotiations and closing

Following the final phase of the due diligence process, the potential purchaser analyses and reviews the advisors’ reports to take the final call about the merger. It also establishes the significance of the deal. The parties then finally negotiate and decide the terms and conditions of the merger, its pricing, transfer of rights and all other important aspects of the deal.

After finalising the merger, both parties discuss the pricing of the assets, liabilities and indemnities of the business that shall be included in the Share Purchase Agreement (SPA) or the Assets Purchase Agreement (APA).

Post-closer implementation/ integration

The final stage is signing the share purchase agreement that includes detailed clauses relating to the rights regarding acids and liabilities of the business, issuing notifications, obtaining consent and so on. Additionally, both parties can arrange for a post-closing integration that will allow them to acknowledge their common business intent. 

Merger is a part of the capital market, which is a crucial concept of investment banking. One can build a career in investment banking by learning the fundamentals of mergers and acquisitions.

Mergers and Acquisitions Best Practices

Companies can improve the chances of a successful merger by implementing the following strategic best practices:

  • Aligning the organisational objectives and market positioning of the acquiring and target company.
  • Conduct strategic planning and proper integration.
  • Indulge in cultural integration by eliminating cultural differences.
  • Engage and communicate with the stakeholders seamlessly.
  • Perform risk management analysis while considering a merger.
  • Keep track of the post-merger performance.

Conclusion

Merger and acquisition is a delicate process that requires extensive research, knowledge, planning and expertise in investment banking activities. This domain contains multiple components for which a strong hold on investment banking operations is important. 

If you want to become an investment banker, consider signing up for the Certified Investment Banking Operations Professional course by Imarticus. This course will assist you in inculcating specialised skills and knowledge essential for building a successful career in investment banking.

Imarticus Learning Reviews – Students Experience

Posted on by Imarticus Learning

Imarticus Learning owes its existence to Mr. Nikhil Barshikar’s (M.D –Imarticus Learning) vision of providing trained technical personnel of international class who would act as leaders in the Banking, Analytics & technology space globally.
Imarticus has been in existence since the last 2 years, and is going strong. With a vision to bring positive changes in aspirants’ lives, we have successfully trained and placed thousands of students within their desired career paths.
As a Student Relationship Manager and a Counselor at Imarticus, it’s a delight to hear what the students feel about the change we brought into their lives. Here are a few reviews given by our students.
Balbir S : Staff is wonderful. Tremendously supportive. I would like to thanks them from the bottom of my heart. While at interview the confidence developed in me by Imarticus was most satisfying. Selected or not i knew i had given my best with confidence. The knowledge and HR training gained was the main reason. Just want to thank Imarticus for every thing.
Jinesh D:  Experience was great, with regards to knowledge, what we learnt we are applying. The knowledge we gained was in depth.
Amit S: It has been an amazing learning experience. Orking on live projects and following guidelines set by major companies while implementing these projects have definitely been one of the major points of this course. Thank you imarticus.
Amita S: Being in Imarticus was a great experience nice exposure to the finance domain. Learning process actually transforms your personality and train you for the corporate world.
Viraj K: It was a great time in Imarticus with high quality professors. It was great here, learning Java, Advanced Java, Communication Skills and the most important Investment Banking. Geeting an awesome knowledge about IB was superb here. Love to be in Imarticus.
Sudarshan B: If you really want to learn the concept of Investment Banking then Imarticus is the place to be. The kind of knowledge that you obtained by the end of the course takes you to a different level all together. With practical learning you are also groomed so as to be readily accepted by the industry. One also gets opportunity to interact with distinguished industry people thanks to our super faculty you are well taken care of
Olson P : The knowledge has help me a lot. Helping me to know more in depth due Imarticus input.
We sincerely thank all the students for taking their time out to send us a note of appreciation. This just motivates us to continue spreading the joy of pursuing aspirations.

-Sohail Merchant
Student Relations Manager
Imarticus Learning

The Evolution of Investment Banking and Financial Regulation

Posted on by Imarticus Learning

The domain of investment banking (IB) has seen notable changes over time, evolving into an essential tenet of the global financial system.

The necessity for efficient regulation to preserve stability and protect investor interests has increased along with the industry’s importance.

In this article, we aim to dive into the specifics of investment banking, starting right from its history. We will discuss the evolution of investment banking focusing on the intricate relationship it bears with financial regulations.

The article also aims to focus on the importance of investment banking, keeping in mind the contemporary financial landscape.

This is a must-read for anyone looking to take up an investment banking course and kickstart their best career in the field.

What is Investment Banking?

Investment banking is banking that deals with substantially higher transaction values on a much larger scale.

It basically refers to a financial service that involves assisting governments, private corporations, and other entities to harness capital and look into financial advisory services. Now here comes the role of investment banks.

Investment banks facilitate these transactions and issue securities, mergers and acquisitions, etc., thereby serving as intermediaries between investors and businesses in the capital markets.

This guarantees a straightforward risk management and advantageous negotiation process that satisfies all parties engaged in the transaction.

By engaging trusted investment banking services, fund managers and businesses can achieve a seamless transaction experience that meets the needs and expectations of all parties involved.

Investment Banking Training

After providing a brief definition of investment banking, it’s natural to question the necessity and importance of utilizing its services for the efficient execution of mergers and acquisitions (M&A) deals or fundraising underwritings.

Investment Banking Evolution

Investment banking has undergone a tremendous shift that has altered the way financial services are delivered and the nature of the global economy.

Initially, investment banks mostly provided advisory services and helped businesses raise funds. However, the function of investment banks changed along with the development of the money market.

Investment banks have broadened their range of services over time to embrace a variety of endeavours. They welcomed mergers and acquisitions, which allowed businesses to collaborate and seize fresh growth prospects.

They entered the asset management industry, assisting people and businesses in portfolio optimisation and sound investment selection.

Trading developed into a crucial component of their business, helping them to negotiate the complex world of futures and securities. They guided investors in their financial endeavours by offering insightful information through cutting-edge research.

A significant turning point came in the late 20th century when regulatory barriers were loosened, granting investment banks greater flexibility in their operations.

This newfound freedom led to the convergence of commercial and investment banking, blurring the traditional lines and giving rise to financial conglomerates.

Investment banks could now engage in a broader range of financial activities, fueling innovation and driving growth in the industry.

The development of investment banking was greatly influenced by the process of globalisation. Investment banks were able to spread across national lines thanks to developments in communication and technology.

They welcomed the chance to service customers from all over the world and adapted their business practises to meet the vast range of demands of a globalised money market.

The current investment banking landscape has been changed by cross-border transactions, global capital flows, and the development of strategic alliances made possible by this globalisation.

Financial Regulation and Investment Banking

The regulation of the financial industry and investment banking are interwoven. Investment banks’ operations are governed by regulations, which make sure they comply with requirements to safeguard investors and maintain market stability as well as operate ethically and responsibly.

Financial restrictions frequently affect how investment banking is done. Regulations may, for instance, specify the capital needs of investment banks, limit some risky operations, or prescribe disclosure and reporting obligations. 

The relationship between financial regulations and investment banking is dynamic and complex. Investment banks must adapt their practices and operations to comply with changing regulatory requirements. Similarly, regulators continuously assess and adjust regulations to address new risks and challenges posed by evolving market conditions.

To delve deeper into the evolution of investment banking and financial regulation, you can explore reputable financial news websites, academic journals, regulatory body websites, and industry publications for in-depth analysis and insights.

The Role Of Derivatives Market in Investment Banking

Investment banking depends heavily on the derivatives market. It entails purchasing and disposing of financial products known as derivatives, whose value is derived from underlying assets like stocks, bonds, commodities, or currencies.

Here are some key roles of the derivatives market in investment banking:

  1. Risk Management: Derivatives have many uses in investment banks. They allow and enable investors to protect themselves against potential losses brought on by changes in interest rates, exchange rates, or commodity prices, which is how they aid in risk management. 
  2. Speculation and Trading: Investment banks engage in derivative trading to speculate on price movements and profit from market fluctuations. They employ advanced trading strategies and sophisticated models to identify opportunities and manage risks associated with derivative positions. This speculative activity contributes to market liquidity and enhances price discovery. 
  3. Structured Products: Investment banks design and create structured products using derivatives. These products combine derivatives with other financial instruments to create tailored investment solutions for clients. Structured products can provide customized exposure to specific market outcomes, leverage investment strategies, or offer enhanced yields. 
  4. Market Making: Investment banks act as market makers in the derivatives market. They facilitate smooth transactions by offering competitive prices, absorbing buying and selling orders, and managing inventory. Market-making activities help ensure that the derivatives market remains efficient and liquid. 
  5. Client Advisory Services: Investment banks offer advisory services to clients regarding derivatives strategies and market opportunities. They assist clients in understanding the risks and rewards associated with derivative instruments, tailor derivative solutions to meet specific objectives and provide ongoing support and guidance for their derivative transactions.

How to Become an Investment Banker?

Becoming an investment banker requires a combination of technical and “soft” skills. An investment banking certification can greatly enhance your candidacy. Networking also plays a vital role in the investment banking industry. Connecting with successful upperclassmen, seasoned professionals, and senior bankers can provide valuable career guidance, interview tips, and potential opportunities. A recommendation from a senior banker can significantly impact your career trajectory.

If you’re a finance graduate with up to 3 years of professional experience, and looking to start your career in investment banking, Imarticus brings to you the Certified Investment Banking Operations Professional course.

Conclusion

Investment banks are adapting and thriving in this constantly changing world. In order to improve their services and offer more individualised solutions, they embrace technology breakthroughs and make use of digital platforms and data analytics. They integrate intricate regulatory frameworks, ensuring compliance while looking for fresh business prospects. 

While investment banks continue to be at the forefront of financial innovation, promoting societal advancement and influencing the direction of international markets, you can become a part of this growing industry with the right motivation and guidance! 

Want to Become an Anti-Money Laundering Specialist? Learn More About Job Roles

Posted on by Imarticus Learning

Financial institutions have to pay special attention to each customer and transaction to identify any fraudulent activity. A bank that has strong anti-money laundering policies will prevent people from depositing illicit money into any bank account.

Security policies are the main concern of financial institutions if they want to stop losses. Not only the financial institutions, but the government is also strict when it comes to money laundering.

Young enthusiasts that are looking to build a career in banking/finance should learn anti-money laundering skills to earn a better job offer. Read on to know more about anti-money laundering and different job roles in the industry.

Understanding money laundering via financial systems

In the money market, many criminals try to coat the source of their incomes. You cannot deposit money obtained from any illegal activity in banks. Money laundering hides the source of the black money and makes it white. The dirty money is moved around in a financial system and, multiple transactions are made to confuse the bank officials. It also includes depositing black money in small amounts or transferring black money to a foreign country.

best investment banking courses with placement in IndiaOnce the dirty money is cleaned via money laundering, criminals can use it to finance criminal activities.

It will not only affect the financial institutions but also affects the country and the citizens.

Financial institutions have strong AML (Anti-money Laundering) policies in place that stop criminals from depositing money.

Performance areas of anti-money laundering jobs

The day-to-day job responsibilities of anti-money laundering professionals in banks are as follows:

  • Anti-money laundering experts have to analyze the money market and uncover the pertaining risks within the financial institution. They are also involved in identifying and monitoring suspicious bank accounts or transactions.
  • Anti-money laundering experts are aware of the current alerts generated by the law enforcement authorities. Many times, they help law enforcement to catch a money launderer.
  • Procedural vulnerabilities and loopholes in the financial system are identified by anti-money laundering experts. All those areas that can be exploited by money launderers are identified by anti-money laundering professionals.
  • Anti-money laundering professionals also offer expert advice to financial executives for maintaining high-risk accounts.

What are the job roles in Anti-money laundering?

The financial market is complex and, criminals are also using advanced money laundering techniques. There are different types of anti-money laundering jobs that work together to stop the movement of black money. The top types of anti-money laundering jobs are listed below:

  • Junior Compliance Administrator: People who join the AML industry become junior compliance administrators. They have to carry out routine AML checking and administration of compliance processes in the bank.
  • Risk & Compliance Officer: A risk & compliance officer will be involved in KYC (Know Your Customer) activities. The risk officer is also concerned with CDD (Customer Due Diligence).
  • Fraud Investigator: Fraud investigators uncover the source of fraud in any financial institution.
  • Chief Compliance Officer: It is responsible for forming better AML policies for the financial institution.

How to learn more about AML?

Many young bankers are choosing online risk management courses to know more about AML. The Certified Investment Banking Operations Professional course offered by Imarticus can be the right choice. This course will teach you about financial markets and risk management. You will also go through case studies to know more about real-world AML processes.

Conclusion

In this digital era, criminals are conducting complex money laundering attempts. To stop those attempts, banks need expert AML professionals in the coming years. With an online course in risk management, you can learn the required AML skills. Start your risk management course now!  

Top 5 Regulatory Changes in the Investment Banking Operations Industry

Posted on by Imarticus Learning

The investment banking industry is responsible for raising capital for businesses. In 2021, investment banks will help their clients in identifying revenue-generating opportunities. The investment banking operations industry must perform per some of the regulatory norms. Regulations for the investment banking operations industry are decided by the central/state government. If an investment bank fails to comply with the regulations, it may go through legal hassles. Besides finance professionals, investment banks also need expert compliance officers for following the regulations. There are investment banking courses online that can help you in learning regulatory compliance. Before you search investment banking courses online, you should know about these five regulatory changes.

 

  • Lending limits

 

The exposure limit for investment banks is decided by the central government. The exposure limit defines the amount of loans banks can give to borrowers based on their total funds. The exposure limit is often revised by the central government and investment banks must follow it. The current exposure limit for banks in India is 15% for a single borrower. For a group of borrowers, the exposure limit for banks in India goes up to 25%. The exposure limit can be increased by 5% for financing infrastructure projects. Investment banks often identify capital ventures and invest themselves. While doing so, they should not lend more than the exposure limit to avoid legal hassles.

 

  • Cash Reserve Ratio (CRR)

 

Financial institutions in India must keep a certain amount of cash with RBI (Reserve Bank of India) to meet payment obligations. The CRR is decided by the RBI and changes all the time. Investment banks must keep an eye on the current CRR to avoid any legal hassles with RBI. The current CRR for financial institutions in India is 3%. It means that if the deposit of a financial institution increases by INR 100, then INR 3 will have to be deposited to the RBI.

 

  • Operation norms

 

Once an investment bank has been incorporated, it must conduct operations according to the regulatory norms. According to the norms, an investment bank must list its shares within three years of its incorporation. The regulatory structure also defines the percentage of foreign shareholding. As for now, the foreign shareholding is restricted to 49% in India (maximum). Investment banks can increase foreign shareholding further but only after contacting RBI. The latest regulations also state that financial institutions must open 25% of their branches in rural areas where banking facilities are limited.

 

  • RBI

 

RBI will only set the banking regulations in India for all investment banks. The RBI Act launched in 1934 has given this power to the RBI for deciding the banking regulations. All investment banks that are incorporated under the ‘Companies Act’ will have to follow the RBI regulations. Often, RBI reviews the regulatory structure and makes changes. Compliance officers must keep an eye on the latest announcements from RBI.

 

  • Investment Advisors Act

 

The Investment Advisors Act brought a paradigm shift in the investment banking sector. Before this act, investment banks misinformed investors to curb the competition. In 1940, the Investment Advisors Act was created in which all investment banks had to register themselves. The fees collected by investment advisors are also regulated by this act. An investment banking certification can help learn more about the regulatory structure.

Which is the best investment banking course in 2021?

Imarticus Learning provides an investment banking certification in partnership with London Stock Exchange. The Certified Investment Banking Operations Professional course will help you in launching your investment banking career. With an industry-endorsed curriculum and career guidance, you can build your investment banking career. Start your CIBOP course with Imarticus now! 

The Roles of an Investment Banker

Posted on by Imarticus Learning

Investment Banks have the unique purpose of playing a number of roles when it comes to the world of finance and investments. The various functions of an investment bank include underwriting of new stock issues, taking the responsibility of mergers and acquisitions and in general acting as a financial adviser to a number of high profile, private firms as well as the governmental firms. Some of the other functions that an investment is responsible to accomplish are the management of assets, for large investment funds as well as personal wealth management of certain high net worth individuals. These and a few other functions have gone on to give these investment banks, a very alluring and sophisticated image. Some of the top Investment Banks that a lot of finance aspirants vie to work for are JP Morgan and Chase, Goldman Sachs, Credit Suisse, Deutsche and so on.

Apart from underwriting, another one of the roles of an investment banker would include acting in the capacity of financial advisers, for any and all of their clients. These investment bankers, provide guidance and advice to the corporations, on a number of things which include, how to make the company go public, raising the required capital as well as many other financial aspects. Mergers and Acquisitions are another one of the important roles of the investment bankers.
These professionals have an expertise, especially when it comes to evaluating a company financially. They are also supposed to assist companies in structuring as well as facilitating various merger and acquisition deals.

In order to ensure, that they are performing all their roles on an optimal level, an investment banker, needs to be one step ahead of all their contemporaries. Being up to date with all the news about the market, being able to get your hands on the latest insights and analysis, both when the market opens as well as when the market closes and looking for ways and means to better their performances.

An excellent investment banking professional is well aware of the fact that they need to keep their skills sharpened all the time. This is probably the reason why a lot of professionals, tend to take up certification programs, offered by esteemed institutes. Imarticus Learning; is one of the top investment banking institutes which is basically equip them with the knowledge as well as the insights of what exactly is the industry looking for.

What is the Difference Between Working in a Private Equity and an Investment bank?

Posted on by Imarticus Learning

An Investment bank is responsible for raising capital and assists its clients in making financial decisions. They help businesses to raise capital via investment from investors. Private equity also helps in raising capital but it is different from an Investment bank in many ways. Both these fields are concerned with the shares of any particular firm/company but their working methodology is different from one another. The professionals who work in both these sectors also have a different working approach. Read on to know more about the differences between working in private equity and an Investment bank.

Difference between Private Equity and an Investment bank

The major differences are as follows:

  • Investment banks provide investment opportunities to their clients but they never buy shares in their client’s business. They assist their clients in raising capital but are never involved in the business whereas if you are working in private equity, you will try to buy a stake in your client’s business. Private equity is fully involved in the client’s business. You can say that besides assisting in raising capital as Investment banks do, they are also an investor for their clients.
  • An Investment bank can help its clients in generating capital and this process can go till the client is satisfied with the bank’s services. In the case of private equity, you will try to buy an underperforming company and then make it successful and quickly sell your stake to some other stakeholder and exit from that company. They try to buy a stake at lower prices and sell it at higher prices.
  • An Investment bank knows the revenue it has to generate for its client in advance whereas if you are working in private equity, there is no limit up to how much you can increase the value of your stake. Private equity also shares their client’s profit as they are also stakeholders in that particular company. Mostly, private equity receives its profit share in dividends.
  • The target investors of private equity are generally UHNWI (Ultra-High Net-Worth Individuals) for investing in ventures whereas an Investment bank generally provides its services to all types of companies/firms ranging from mid-level companies to high-level companies.
  • The analysis of clients, market structure, etc. done in the Investment banks is more detailed and critical because they have to identify the risk associated with any client. On a contrary note, private equity does data analysis only to find out about the trends and potential investors. There is not much risk associated with their clients as they mostly work with UHNWI clients who can manage themselves pretty well.

Working Culture of Employees in an Investment bank and a Private Equity

An Investment bank has a workforce consisting of analysts, consultants, etc. who are larger in number as compared to the number of workers in private equity. Private equity works with a limited number of employees and has fewer working hours as compared to an Investment bank. The employees in Investment banks have fixed salaries but the employees in private equity are also involved in the business and many times get a small percent of the share of any particular venture where their firm is investing.

One can choose any of the aforementioned fields according to their interests. The skills required are almost the same in both of these sectors. You need to have more negotiation skills for working in private equity and if you are working in Investment banking, you need to have an analytical approach. To learn more about the working methodology, one can take up Investment banking courses available on the internet.

Also Read: Difference Between Investment Banking and Corporate Finance

Top Investment Banking Trends To Watch In 2021

What Are The Best Investment Bank To Work For

How Can I be a Good Investment Banking Analyst?

Posted on by Imarticus Learning

With the growing trend in investment, there is a surge in the demand for jobs especially in the field of investment banking analysis. The more people invest, the more is the need for individuals to analyse investment portfolios. The profile of an investment banking analyst surely requires hard work but it promises amazing returns and lucrative promotions.

Basic Responsibilities of an Investment Banking Analyst

  • Reviewing the financial data and analysing the details
  • Compiling the reports and presenting the findings
  • Performing administrative duties

Tips to Become a Good Investment Banking Analyst

Every job and field requires proper dedication and hundred per cent submission to the work. An employee must always take care of the duties that he has been assigned along with fulfilling all the responsibilities. Maintaining cordial relationships with all the fellow employees along with respecting the bosses is consequential.
For an aspirant to become a remarkable investment banking analyst, following tips need to be considered.

  1. Stay Attentive: Although every work on the job must be done with proper attention, the job of an investment banking analyst requires highly undivided attention. This is because an analyst has to deal with certain specific details involving numbers and money. The passing of almost all the portfolios depends upon the findings of the analyst. This makes it all the more significant for the analyst to put all his attention in his work while on the job.
  2. Get Along With Your Team: Many times it is possible that a group of analysts have to work together on certain projects. Co-ordination among all the members of the team is really important. To become a good investment banking analyst, an employee needs to co-inside with the interests of the whole team. By working efficiently in a team, one can very easily improve his performance and learn through the capabilities and creativity of others.
  3. Gain The Required Knowledge: For an investment banking analyst, he must possess all the required knowledge of his field. Profound knowledge of accounting standards, mathematical formulas and other applicable principles is required to save a lot of time and efforts while on the work.
  4. Use Computer, Be Smart: Where an analyst has to deal with huge numbers and data, having a strong grip on useful applications like Ms Excel, Ms Word and Ms PowerPoint is important. This job requires giving presentations to investors and presenting the data systematically for better and easy understanding. Therefore, sound knowledge of these applications can help the analyst raise his standards of working.
  5. Work Well in Financial Modelling: Financial modelling is a field which must be known to an investment banking analyst in detail. Financial modelling deals with forecasting the performance of any company in terms of its earning and financial stability. Financial modelling is done by making the use of Ms Excel. If an analyst aspires to progress in his field, he must ensure that he has a way with financial modelling.
  6. Don’t Shun from Long Working Hours: In a desk job like this, sometimes working for late hours can demotivate the employees. But an investment banking analyst must understand that working for long hours in the initial phase may land him at something beneficial in professional terms. It is quite obvious that working for more time than usual will help you undertake more work leading to a greater experience in lesser time. Also, you can learn to handle burden at an early stage which may come up as a problem at higher positions.

Along with the tips listed above, you can consider Imarticus learning for a professional investment banking course. For a stable career in this field, taking up an investment baking course must be considered.

Also Read: How To Become Investment Banker