‘Ample opportunities for CAs in merchant banking’
   Date :05-Jan-2022

■ Business Bureau :
“CA HAS umpteen opportunities. There are the traditional areas where he can function like auditing, taxation, compliance etc., on the other hand there are less explored options or as we call it ‘Unchartered’ territory that a chartered accountant can explore like merchant banking, FEMA, corporate restructuring etc.,” said CA Ayush Parakh, CEO of Kreo Capital. The term merchant bank refers to a financial institution or a regulated corporate that conducts underwriting, loan services, financial advising, and fundraising services for large corporations and high-net-worth individuals (HWNIs).
“Merchant banks are experts in international trade, which makes them specialists in dealing with multinational corporations. Unlike retail or commercial banks, merchant banks do not provide financial services to the general public. Some of the biggest merchant bank of our times our G o l d m a n Sachs, J.P. Morgan Chase etc,” he said. Another term used interc h a n g e a b l y with merchant banking is investment banking, however there is a difference between the two. Investment banking is a global term that encompasses within itself two major areas of operation –merchant banking and mergers and acquisition Along with these two there are multiple other services that an Investment Bank, or I-Banks as they are referred to, provides viz., research reports, valuations transaction advisory etc., but above mentioned arte the two key components. So in other words, I-Banking includes merchant banking, he said. “Merchant bankers are highly driven, motivated and equipped with a certain skill-set to provide aforementioned services.
A Chartered Accountant is inherently taught all of this during the tenure of their course. As a result, Chartered Accountants equipped with understanding of the basics of finance and accounts are a very good fit for the role. Merchant banks especially the front office roles are looking for people who are street smart, have top of the line academic score, have excellent presentation, modelling and vocabulary skills apart from content and knowledge,” Parakh said. “CAs who are always looking to upgrade and update themselves and develop on required skill set through more practical exposure will be able to enter and compete in this space. With unparalleled knowledge of accounts and finance, CA is qualified to further is his career with as a merchant banker,” he said