Raising Capital for Business

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    Raising Capital For Business

    Presented

    By

    Santosh Kumar

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    Contents

    } Raising capital for businesses

    } Fund Raisers}Diagram

    } Conclusion

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    Raising capital for businesses

    } The Stock Exchange provide companies with the

    facility to raise capital for expansion th

    rough

    selling shares to the investing public.

    }A company can raise money by selling shares

    to investors and its existing shares can be bought

    or sold.

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    Fund Raisers

    } companies raise their funds from domestic and foreign

    sources, both public and private. The companies raise funds

    from following sources:

    Fund Providers Intermediaries

    Organizations

    Market Regulators

    Corporate partners

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    F

    und ProvidersFund Providers are the entities that invest in the capitalmarkets.

    These can be categorized as domestic and foreign investors,

    institutional and retail investors.The list includes subscribers to primary market issues,

    investors who buy in the secondary market, traders,

    speculators, FIIs/ sub accounts, mutual funds, venture capital

    funds, NRIs, ADR/GDR investors, etc.

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    Intermediaries

    } Intermediaries are service providers in the market,

    including stock brokers, sub-brokers, financiers,

    merchant bankers, underwriters, depository

    participants, registrar and transfer agents, FIIs/ sub

    accounts, mutual Funds, venture capital funds,

    portfolio managers, custodians, etc.

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    Organizations

    }Organizations include various entities such as

    BSE, NSE, other regional stock exchanges, and the

    two depositories National Securities Depository

    Limited (NSDL) and Central Securities Depository

    Limited (CSDL).

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    Market Regulators

    }Market Regulators include the Securities and

    Exchange Board of India (SEBI), the Reserve

    Bank of India (RBI), and the Department of

    Company Affairs (DCA).

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    Corporate partners

    }A another alternative source of cash for a private

    company is a corporate partner, usually an

    established multinational company, which provides

    capital for the smaller company in return for

    marketing rights, patent rights, or equity.

    Corporate partnerships have been used

    successfully in a large number of cases.

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    Conclusion} There are many different funding options available to

    new business owners who are seeking to raise capital.

    } Personal savings and money from family and friends

    can be readily available, it may not be enough to raise

    capital.

    } Instead, new business owners can raise capital from

    financial institutions, government grants, and even

    from angel investors and venture capitalists.

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    THANK YOU