|Mr.Vishal Parwani, Associate Director,|
Vishal Parwani, associate director at CRISIL Global Research & Analytics, visited SIIB few days ago to enlighten the students on ‘Investment Banking’. India's leading ratings agency - CRISIL is a global analytical player providing ratings, research and risk and policy advisory services.
Mr.Parwani stressed on the areas of operation of the investment banks – capital raising, underwriting, equity research, merger & acquisitions and finally sales & trading. CRISIL’s fort is equity research. According to Mr.Parwani, investment services involves the primary investors, buy side and sell side parties.
Primary Investors – Retail investors, corporations, government entities, trusts & HNIs
Buy Side – Asset management companies, insurance companies, pension fund managers, hedge funds & private banker
Sell Side – Stock brokers, broking division of investment banks
He also described the roles of research analyst, sales analyst and trader. According to him, research analyst analyses fundamentals, arrive at valuation & recommendation (financial models & research reports) and meets management of clients for financial advisory purposes. Sales analyst aids in servicing of existing clients and adding new ones. They facilitates meeting between buy side clients and research analysts. Trader executes trade.
The brokerage earned is allocated in the following ratio – research 40%, sales 40% and trading 20%. Apart from the core services described above, there are support services in I-banks like legal & compliance, treasury, tax, audit, corporate services and infrastructure support.
Article contributed by Santanu Das. Santanu is a International Business student , SIIB Pune
( Batch of 2012-14). Management consulting interests him and when not in class you would find him quizzing, debating and going aorund doing PR activities. He can be reached at email@example.com