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FINANCIAL SERVICES

by Jntu Heroes
Type: NoteInstitute: Jawaharlal nehru technological university anantapur college of engineering Offline Downloads: 15Views: 539Uploaded: 9 months agoAdd to Favourite

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INVESTMENT BANKING & FINANCIAL SERVICES 14MBAFM302 Subject Code: 14MBA FM302 IA Marks: 50 No. of Lecture Hours / Week: 04 Exam Hours: 03 Total Number of Lecture Hours: 56 Exam Marks: 100 Module 1: (8 Hours) Investment Banking- Introduction-Functions of Investment Banks- Types of Investment BanksInvestment Banking Services- Merchant Banking Services-Issue Management-Pre issue and Post issue obligations-Changing landscape of Investment Banking Regulation of the Capital MarketSEBI regulations for merchant bankers, brokers and sub brokers, intermediaries and portfolio managers- SEBI issue and Listing of Debt securities Regulation 2008 Module 2: (8 Hours) Depository System: Objectives, activities, interacting systems, role of depositories and their services, Advantages of depository system - NSDL and CDSL. The process of clearing and settlement through Depositories, Depository Participants. Regulations relating to DepositoriesSEBI (Depositories and Participants) Regulations 1996- Registration of depository and participant- Rights and Obligations of depositories and participants - Recent amendments Custodial services- The Stock Holding Corporation of India Limited Module 3: (7 Hours) Housing Finance: Role, Types of housing loans, Institutions and banks offering Housing Finance, Procedure and Interest rates. Income Tax Implication. Reverse mortgage loan. Non-Banking Finance Companies: Types, Growth, Functions, RBI Guidelines, and Prudential Norms. Module 4: (7 Hours) Factoring: Origin, Types, Factoring mechanism, advantages, factoring charges, International factoring, Factoring in India Forfeiting: Origin, characteristics, benefits, difference between factoring and forfeiting, growth of forfeiting in India Module 5: (8 Hours) Underwriting: Concept-Devolvement-Business model-Underwriting in fixed price offers and book built offers. Venture Capital: Concept, features, Origin and the current Indian Scenario. Private equityInvestment banking perspectives in private equity 1 Dept. of MBA/SJBIT Page 1
INVESTMENT BANKING & FINANCIAL SERVICES 14MBAFM302 Microfinance-The paradigm-NGOs and SHGs-Microfinance delivery mechanisms-Future of micro finance. Module 6: (12 Hours) Leasing: Concept, Steps in Leasing Transactions, Types of Lease, Legal frameworks, Advantages and disadvantages of Leasing, Contents of a Lease Agreement, Matters on Depreciation and Tax, Problems in leasing, Factors influencing Buy or Borrow or Lease Decision. Hire Purchasing: Concepts and features, Hire Purchase Agreement, Comparison of Hire Purchase with Credit sale, Instalment sale and Leasing. Banks and Hire Purchase. Problems related to outright purchase, Hire purchase and Leasing. Module 7: (6 Hours) Credit rating: Definition and meaning, Process of credit rating of financial instruments, Rating methodology, Rating agencies, Rating symbols of different companies. Rating agencies for SMEs Securitization of debt: Meaning, Features, Special Purpose Vehicle, Types of securitisable assets, Benefits of Securitization, Issues in Securitization. 2 Dept. of MBA/SJBIT Page 2
INVESTMENT BANKING & FINANCIAL SERVICES 14MBAFM302 CONTENTS: MODULE CHAPTER NAME PAGE NO. 1 Investment Banking 4 - 17 2 Depository System: 18 - 29 3 Housing Finance 30 - 44 4 Factoring 45 – 55 5 Underwriting 56 – 67 6 Leasing 68 – 81 7 Credit rating 82 - 94 3 Dept. of MBA/SJBIT Page 3
INVESTMENT BANKING & FINANCIAL SERVICES 14MBAFM302 Module 1: (8 Hours) Investment Banking- Introduction-Functions of Investment Banks- Types of Investment BanksInvestment Banking Services - Merchant Banking Services-Issue Management-Pre issue and Post issue obligations-Changing landscape of Investment Banking Regulation of the Capital Market- SEBI regulations for merchant bankers, brokers and sub brokers, intermediaries and portfolio managers- SEBI issue and Listing of Debt securities Regulation 2008. An investment bank is a financial institution that assists individuals, corporations, and governments in raising financial capital by underwriting or acting as the client's agent in the issuance of securities (or both). Functions of Investment Banks a. Core Business  Underwriting  Distributing  Advising  Others b. Back Office  Operations  Technology c. Middle Office  Risk Management  Corporate Treasury  Financial Control  Corporate Strategy  Compliance d. Core Business - Underwriting  Assuming the risk of selling a security issue at a satisfactory price  Term borrowed from insurance e. Core Business - Distributing  Selling function of investment banking  The primary function of an investment bank is buying and selling products. 4 Dept. of MBA/SJBIT Page 4

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