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Merchant Banking originated in

AItaly

BFrance

CEngland

DNetherlands

Answer:

A. Italy

Read Explanation:

Merchant banking:


  • New projects and raising funds through borrowing and issue of equity.
  • They were originally traders of commodities.
  • Besides trading, they undertake financing to trade especially foreign trade.
  • They also collect deposits from their customers.
  • The basic function of a Merchant Bank is - Marketing Corporate Securities and Providing services related to capital market.
  • Merchant banking activities especially those covering issue and underwriting of shares and debentures.
  • Merchant Banking originated in Italy.
  • First Merchant Banking started in India by Grindlays Bank in 1967
  • First Indian bank started merchant banks in India- SBI (1972)



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