Question : What is the main role of an investment bank in the capital market?
Option 1: Facilitating government bond auctions
Option 2: Assisting companies in mergers and acquisitions
Option 3: Regulating the stock exchanges
Option 4: Providing insurance services
Correct Answer: Assisting companies in mergers and acquisitions
Solution : The correct answer is (b) Assisting companies in mergers and acquisitions.
The main role of an investment bank in the capital market is to assist companies in mergers and acquisitions (M&A) activities. Investment banks provide advisory services and support to companies involved in buying, selling, or merging with other companies.Investment banks play a crucial role in M&A transactions by providing expertise and guidance throughout the entire process. They help companies assess potential targets, evaluate the financial and strategic implications of the transaction, and negotiate the terms of the deal. Investment banks also assist in structuring the transaction, raising capital, and facilitating the necessary regulatory approvals.
Question : The Securities and Exchange Board of India (SEBI) is responsible for:
Option 1: Regulating and supervising the capital market
Option 2: Regulating and supervising the money market
Option 3: Regulating and supervising the insurance market
Option 4: Regulating and supervising the commodity market
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