Cover -- Preface to the Fourth Edition -- Preface to the First Edition -- Contents -- List of Tables and Statements -- Chapter 1 Merchant Banking: Nature and Scope -- Origin of Merchant Banking -- Money Changer and Exchanger -- Merchant Banks in the United Kingdom -- Merchant Banking in India -- Banking Commission Report, 1972 -- Services Rendered by Merchant Banks -- Organisation of Merchant Banking Units -- Investment Banking -- Investment Banks and Commercial Banks -- Restrictions on Commercial Banks -- Investment Banking in USA -- Glass-Stegall Banking Act, 1933 -- Activities of Investment Banks in USA -- Universal Banking -- Definition of Universal Banking -- Chapter 2 Regulation of Merchant Banking Activity -- Introduction -- Nature of Merchant Banking -- Capital Adequacy Requirement -- Activities of Merchant Bankers (July 01, 1998) -- Notifications of the Ministry of Finance and SEBI -- Rationale of Notifications -- Objectives of the Merchant Bankers Regulations -- Definition of Merchant Banker -- Consideration of Application -- Prospectus (Filing and Registration) -- Categories of Merchant Bankers -- Exemption from RBI Regulations -- Code of Conduct -- General Obligations and Responsibilities -- Responsibilities of Lead Manager -- Insider Trading -- Procedure for Inspection -- Defaults of Merchant Bankers and Penalty Points -- General Defaults -- Minor Defaults -- Major Defaults -- Serious Defaults -- Defaults in Prospectus -- General Negative Marks -- International Code and Standards -- Investment Recommendations -- Chapter 3 Project Preparation and Appraisal -- Introduction -- Project Identification -- The Stages of Project Selection -- Feasibility Study -- Appraisal of Project -- Financial Appraisal -- Simple Rate of Return Method -- Pay Back Period -- Internal Rate of Return (IRR) -- Net Present Value Method -- Financial Analysis.

Liquidity Ratios -- Acid Test or Quick Ratio -- Debt Utilisation Ratio -- Debt-Equity Ratio -- Fixed Assets Coverage Ratio -- Debt Coverage Ratio -- Interest Coverage Ratio -- The Break-Even Point (BEP) -- Derivation of BEP from Income Statement -- Technical Appraisal -- Objectives -- Project Concept -- Capacity of Plant -- Flexibility of Plant and Flexible Manufacturing Systems -- Evaluation of Technology -- Inputs -- Location -- Interdependence of the Parameters of Project -- Economic Appraisal -- Aspects of Economic Appraisal -- Employment Effect -- Net Foreign Exchange Effect -- Social Cost-Benefit Analysis -- Chapter 4 Securities -- Nature and Kinds of Securities -- Debentures -- Definition and Nature -- Features of Debentures -- Negotiability -- Security -- Duration -- Convertibility -- Floating Rate Bonds -- Warrants -- Other Debt Securities in Vogue Abroad Income Bonds -- Asset Backed Securities -- Securitised Debt Instruments (2007) -- Junk Bond -- Indexed Bonds -- Recent Trends in Instrument Design and Bond Issues by all India Financial Institutions -- Easy Exit Bond -- Regular Income Bonds -- Retirement Bonds -- IFCI's Deep Discount, Easy Exit, Regular Income and Retirement Bonds (1996) -- ICICI's Index Bond and Capital Gain Bond (1997) -- Index Bond -- Capital Gains Bond -- Encash Bond -- GOI Guidelines on Issue of Debentures (28.10.1980) -- Remedies for Unsecured Debentureholder -- Procedure for Issue of Debentures -- Pricing of Bonds -- Example -- Relationship between Price and Yield -- Coupon Rate, Required Yield and Price -- Yield Measures -- Price Volatility of a Bond -- Measures of Bond Price Volatility -- Debt Issues by Government -- Repos and Reverse Repos -- Interbank Repos -- Liquidity Adjustment Facility (LAF) -- Primary Dealers -- Equity Shares -- Nature -- Differential Shares -- Share Capital.

Conversion of Shares into Stock -- Denomination -- Cash Dividends -- Alteration of Share Capital -- Increase of Subscribed Capital -- Subdivision of Shares -- Transfer of Shares -- Preference Shares -- Nature -- Cumulative and Non-Cumulative -- Participating -- Redeemable Preference Shares -- Fully Convertible Cumulative Preference Share (EQUIPREF) -- Preference Shares with Warrants Attached -- Chapter 5 Design of Capital Structure -- Capital Structure and Financial Structure -- Debt-Equity Ratio -- Preference Shares -- Long-Term Debt -- Sources of Funds and Project Cost -- Optimum Capital Structure -- Financing Decision -- Debt and Financial Risk -- Financing Decision and Cost of Capital -- Cost of Capital -- Cost of Borrowing -- Cost of Preference Capital -- Cost of Equity Capital -- Chapter 6 SEBI Guidelines for Public Issues -- Objective and Scope of SEBI Guidelines -- General -- Period of Subscription -- Terms of the Issue -- Retention of Oversubscription -- Compliance Officer to be Appointed by Lead Merchant Banker -- SEBI Guidelines for Public Issues -- Qualified Institutions Placement (QIP) -- Listing -- Dematerialisation -- Public Issue of Securities by Unlisted Company -- Offer for Sale -- Grading of IPOs (2007) -- Credit Rating for Debt Instruments -- Outstanding Warrants -- Partly Paid-up Shares -- Listed Companies -- Unlisted Companies -- Infrastructure Company -- IPO by Bank -- Differential Pricing -- Price Band -- In Case of Offer for Sale -- In Case of Listed Companies -- In Composite Issues of Listed Company -- In Case of Convertible Security -- Promoter's Participation in Excess Over Minimum is Preferential Allotment -- Exemption from Requirement of Promoter's Contribution -- Lock-In Requirements -- Lock-In Preissue Share Capital of an Unlisted Company -- Lock-In of Excess -- Firm Allotment Basis.

Obligations of Lead Merchant Banker -- Appointment of Merchant Bankers -- Co-Managers -- Bankers to Issue -- Registrars to Issue -- Underwriting -- Offer Document to be Made Public -- Despatch of Issue Material -- No Complaints Certificate -- Mandatory Collection Centres -- Authorised Collection Agents -- Advertisement for Rights Post Issue -- Appointment of a Compliance Officer -- Abridged Prospectus -- Agreements with Depositories -- Underwriting -- Reservations and/or Firm Allotments -- Capital Structure -- Firm Allotments and Reservations -- Guidelines for Preferential Issues -- Pricing of the Issue -- Currency of Financial Instruments -- Non-Transferability of Financial Instruments -- Currency of Shareholders Resolutions -- Certificate from Auditors -- Preferential Allotments to FIIs -- Non-Applicability of the Guidelines -- Other Issue Requirements -- Minimum Subscription -- Underwritten Public Issue -- Guidelines for Bonus Issues -- Salient Features of Offer Documents -- General Information -- Capital Structure of the Company -- Terms of the Present Issue -- Particulars of the Issue -- Company, Management and Project -- Outstanding Litigation -- Undertaking by Directors -- Guidelines for OTCEI Issues -- Eligibility Norms -- Pricing Norms -- Projections -- Guidelines on Initial Public offers Through the Stock Exchange Online System (E-IPO) (30.11.2000) -- Agreement with the Stock Exchange -- Appointment of Brokers -- Appointment of Registrar to the Issue -- Responsibility of the Lead Manager -- Mode of Operation -- Guidelines for Issue of Debt Instruments -- Requirement of Credit Rating -- Requirement in Respect of Debenture Trustee -- Creation of Debenture Redemption Reserves (DRR) -- Distribution of Dividends -- Redemption -- Disclosure and Creation of Charge -- Requirement of Letter of Option -- Other Requirements.

Additional Disclosures in Respect of Debentures -- Guidelines for Issue of Capital by Designated Financial Institutions -- Promoters' Contribution -- Reservation for Employees -- Pricing of Issues -- Specific Disclosures -- Issue of Debentures Including Bonds -- Rollover of Debentures/ Bonds -- Protection of the Interest of Debenture/Bond Holders -- New Financial Instruments -- Bonus Issues by DFIs -- Other Requirements -- Utilisation of Money Before Allotment -- Indian Depository Receipts (IDRs) -- Chapter 7 Pre-Issue Management: Types of Issues and Analysis of Prospectus -- Introduction -- Savings and the Primary Market -- Types of Issues -- Public Issue Through Prospectus -- Decline in Investor's Interest -- Initial Public Offers (IPOs) in 1996 -- Premium Offers -- Par Offers -- Return on All IPOs -- Impact of the Restriction of Access to Capital Market -- Activate the Primary Market -- Issue of Prospectus -- Transparency and Requirements in Prospectus -- Dating of Prospectus (Sec.55) -- Registration of Prospectus (Sec . 60) -- Contents of Prospectus -- Audit Report and Accounts -- Preliminary Expenses -- Consent of Experts -- Offer for Sale by Issue House -- Transparency of Prospectus -- Civil Liability (Sec.62) for Misstatements in Prospectus -- Criminal Liability for Misstatements in Prospectus -- Shelf Prospectus -- Fast Track Issue Mechanism -- Offers for Sale -- Bought-out Deals (BoDs) -- Private Placement -- Private Equity Funding -- Grey Market -- Appendix 7.1 -- Cover Pages -- Capital Structure of the Company -- Notes to Capital Structure -- Terms of the Present Issue -- Terms of Payments -- Arrangements for Disposal of Odd Lots -- Rights of the Instrument Holders -- Applications by Mutual Funds -- Applications by NRIs -- Disclosures about Stock Invests -- Despatch of Refund Orders -- Undertaking by the Issuer Company.

Utilisation of Issue Proceeds.