Job application while working etiquette

hey,

In June I started a 6 months internship with a fairly good investment bank. I have received much praise by most people I work for, and was recently given the offer of an extension (extension offers usually happen during final weeks of internship) and authorization (needed to talk with and consult clients, costs money for the company).

I am very happy about being here. The guy indicating I will be extended and who have asked me to get authorized is the head of the desk. It seems to me that he is interested in having me for the long run but I really dont know as it is my first banking internship. At the same time, an Md on the same desk, who knew I was going to get authorized, told me that he has been told by management that they will not increase the headcount on my team, and therefore an internship is as far as I can go in this team.

Therefore, I have started looking for other jobs, despite having some time left here. How should one generally go on about this? Can my current company get to know about me looking for other jobs? One of the companies have offices right next to my office.

Iam really hoping for some input on this. I just wanna set myself up so that I am in the driver's seat here.

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