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Every year some engineering graduates in India move into finance, through an MBA, a certification or a campus analyst role. Merchant banking is a destination people name often and explain rarely. Here is what the work is, why engineers fit it, and what to study.
What does a merchant banker actually do?
Under India's securities rules, a merchant banker is "any person who is engaged in the business of issue management either by making arrangements regarding selling, buying or subscribing to securities or acting as manager, consultant, adviser or rendering corporate advisory service in relation to such issue management", as quoted in SEBI's 2024 consultation paper on the Merchant Bankers Regulations.
In plain words: when a company raises money by selling shares or bonds, a merchant banker manages the process. The same paper lists activities such as managing public issues, underwriting, private placements, and advice on takeovers and acquisitions.
It is a small field. SEBI counted 224 registered merchant bankers as of 31 July 2024, according to the same consultation paper, so expect fewer openings than in software or consulting. SEBI was reviewing these rules that year, so check its website before trusting an older guide.
Why do engineers move into finance?
Three reasons come up often.
Comfort with numbers. Valuation and due diligence are long chains of calculation, checked line by line.
Structured problem-solving. Splitting a company into revenue, costs and risks is like splitting a machine into subsystems.
The MBA route. Many engineers reach finance through a management degree. At IIM Ahmedabad, non-engineers made up 33.5% of the 59th PGP batch, which joined in 2022; institute officials called it one of the highest shares of non-engineering students in the course (IIM Ahmedabad). So about two in three students in that batch came from engineering.
An honest caveat: the job also needs accounting, securities law and clear writing, which an engineering degree does not teach. Plan for those gaps.
Which finance roles can an engineering graduate apply for?
Titles vary by firm, but these are the usual entry points:
Issue management (equity capital markets) analyst: helps prepare offer documents and works through the steps of an IPO.
M&A or corporate advisory analyst: builds financial models for mergers, takeovers and buybacks.
Due diligence and compliance: checks that what a company claims in its offer document is backed by records.
Equity research: writes reports on sectors and companies, where knowledge from your branch can help.
Risk and quantitative roles: closer to maths and coding.
If the last one appeals most, read our comparison of actuarial science and data science careers.
Which courses help: MBA, CFA or NISM?
NISM Series-IX: Merchant Banking. NISM was established by SEBI, and this certification is aimed at people working with SEBI-registered merchant bankers on IPOs, open offers, buybacks and delistings (NISM syllabus outline). The exam has 100 questions in 120 minutes, a pass mark of 60% and negative marking of 25% per wrong answer, and the certificate is valid for 3 years (NISM).
CFA Program. It has three levels of exams, and to earn the charter you also need 4,000 hours of relevant work experience over at least three years (CFA Institute). It is a long commitment that suits research and investment roles.
MBA in finance. A common way into investment banking. If you are weighing it, our guide on whether to take CAT after engineering walks through the trade-offs.
Whichever route you choose, the maths underneath is the same: percentages, compound growth, probability and statistics. If any of these feel shaky, the Fermi Concept Library has a lesson for every concept in mathematics, each with its place in the map.
What should you do in the next 12 months?
A plan for a third- or final-year engineering student:
Months 1-2: pick one listed company in an industry you know from your branch. Read its annual report and learn what each line of the balance sheet means.
Months 3-4: read one draft offer document for an IPO and list everything the merchant banker had to verify.
Months 5-6: prepare for and sit the NISM Series-IX exam.
Months 7-9: build a simple valuation model of your company in a spreadsheet and write a two-page note on it.
Months 10-12: apply for internships and analyst roles, then decide whether CAT or CFA Level I comes next.
When an interviewer asks why you are leaving engineering, a short, specific answer works better than "I like finance". For example: "In my final-year project I costed every part of a solar pump, and I enjoyed that more than the design. Since then I have passed NISM Series-IX and modelled a listed pump maker. Here is my two-page note."
If you do not know where to start on the maths, Fermi's AI tutor can work out what you already know and build a plan for the session. Still in school? Our guide to careers for students who are good at maths maps out more options.
