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• The Industrial Finance Corporation of India can also subscribe to the debentures that these
companies issue in the market.

• The IFCI also provides guarantees to the loans taken by such industrial companies.

• When a company is issuing shares or debentures the Industrial Finance Corporation of India can
choose to underwrite such securities.

• It also guarantees deferred payments in case of loans taken from foreign banks in foreign
currency.

• There is a special department the Merchant Banking & Allied Services Department. They look
after matters such as capital restructuring, mergers, amalgamations, loan syndication, etc.

• It the process of promoting industrialization the Industrial Finance Corporation of India has also
promoted three subsidiaries of its own, namely the IFCI Financial Services Ltd, IFCI Insurance Services Ltd
and I-Fin. It looks after the functioning and regulation of these three companies.

ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and
representatives of Indian industry. The principal objective was to create a development financial
institution for providing medium-term and long-term project financing to Indian businesses.

The major objective of the ICICI was to meet the needs of the industry for permanent and long term
funds in the private sector. In general, the major objectives of the Corporation are: ... To motivate pvt
ownership of industrial investment and to promote and assist in the expansion of markets.

1. To assist in the formation, development, and modernization of business enterprises in the non-
public sector

2. It also provides medium term and long term loans in rupees and foreign currencies.

3. To underwrites new issues of shares and debentures

4. It provides equipment finance.

5. To motivating private ownership of industrial investment and promoting and supporting the
expansion of markets