Banking and financial institutions and the securities market are two broad platforms for institutional intermediation of the flow of capital in the economy. Investment banking mainly deals with the primary function of assisting the securities market in the movement of financial resources from the investors to the issuers. Investment banks are actually the counterparts of commercial banks in financial markets. They perform the function of intermediation in the area of resource allocation. Regulatory authorities require promotion of quality issues, integrity and maintenance of compliance with the law on behalf of the banks as well as the issuers. Advising corporations on how best to configure their balance sheets constitutes the very heart of investment banking. This paper focuses on investment banking industry and related laws, with special reference to India and SEBI’s active role in the development of a powerful regulatory structure.

Investment banking refers to the business of raising capital for the companies and further involves a wide range of activities like underwriting, providing financial advisory services, selling and trading securities, acting as an agent of client for issuing securities and managing assets. Investment banks have to cater to a very diverse group of stakeholders consisting of governments, companies, non-profit organizations as well as individuals. The investment banks help them raise necessary funds in the capital market.

Law Review Journal, Protection, Investment Banking in India, Comprehensive Regulatory Structure, Investment banking, Initial Public Offerings (IPOs).