Merchant bank is used in the case of private equity investment where unregistered securities of either privately or publicly held companies are also involved in it. Bank offering different services to the public/private companies is known as merchant bank. It includes both commercial and investment banks. The functions which are performed by the merchant bank when the company wants to raise funds from intermediaries as follows:-

1) Portfolio management

2) Loan sanction

3) Financing the project

4) Management of issue

5) Lease management