What To Expect From Investment Banking Services In The Future?

There are huge amounts of market transactions occurred between different companies, firms, individual investors, and the government. To facilitate these transactions in a smooth manner, investment banking plays a crucial role in the present market scenario. There is no particular service or function that defines this form of banking clearly. It is actually a common terminology involving varied tasks such as trading stocks, underwriting, asset management, debt syndication, mergers and acquisitions (M&A) advisory and financial advisory. The role of investment bankers will be even more defining in the future regardless of the prevalent economic conditions in India.

If we’ll look at the work areas of the investment banking companies, they usually assist their customers in gaining an access to capital by means of debt, equity and other types of instruments related to investing. These organizations trade stocks and other derivative products as well. Companies involved in merger and acquisition deals look to them too. Not long ago, the global economy was bearing the brunt of a recession that forced numerous investment banking companies to shut down their operations. Several others were on the threshold of closedown. Some firms in India were adversely influenced by this economic downturn as well. All these developments provided skeptics enough reasons to believe that these firms could not be revived again.

The happening of recession led us to the fact that only those investment firms having their foundation strong can come out successfully from any untoward condition. People in doubt should understand that the market will always go through its own upswings and downswings. Firms who were believed to be down and out are now basking in glory with the help of their sheer financial power. Nevertheless, investment banking firms in the country promise a lot for the future, even if novel guidelines regarding investing may be laid down.

Taking clues from the happenings in the United States after the economic downturn, the policy makers in our country may be enticed to introduce a number of strict guidelines for investment banking services. All these guidelines may be formulated keeping better management of risks in mind. One more area that the policy makers may pay attention to is fiddling with the choice of claw back. This will definitely safeguard the interests of investment companies against deceitful and corrupt traders and companies that might bring about a market crash, leading to massive losses. This new regulation will make sure that their profits can be recouped. Finally, the banks may be suggested to slow down short term financial support so as to abridge inequality between assets and liabilities in a proper way.

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