The term Merchant Banking has its origin in the trading methods of countries in the late eighteenth and early nineteenth century when trade-taking place was financed by bill of exchange drawn by merchanting houses

(ii) Preparation of project report after considering its financial, economic and market feasibility.

(iii) Estimation of the cost of the project.

(iv) Deciding the means of financing and the composition of various types of securities.

(v) Studying the procedural aspects of project implementation.

(vi) Provide assistance in obtaining government consent for implementation of the project.

Sometimes, merchant banks also encourage and guide Indian entrepreneurs to make investment in Indian projects in India and joint ventures overseas by offering all possible help in project appraisal and implementation.