lOMoARcPSD|53991452
387 16 Ccccm 15-16 Cccbm 15-16 Cccac 15 202005
1810281329
Financial Management (University of Delhi)
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Financial services
Unit-1
Introduction to financial services- Merchant banking, meaning- Scope, function- Management
of new issue-Indian experience-Securities And Exchange Board of India (SEBI) guidelines.
Unit-2
Mutual fund: Meaning- types- function- advantages- institution involved- UTI, LIC, and
commercial bank entry of private sector- performances- growth of mutual funds in India- SEBI
guidelines- AMC.
Unit-3
Lease financing: The concept- merits & demerits of leasing- types- the Indian leasing scenario.
Unit-4
Hire purchase: meaning- RBI guidelines- H.P & Transport Industry- Lease Vs H.P- Problems
& prospect of hire purchase in India
Unit-5
Factoring: concepts-signification- types- factoring mechanism- factory Vs leasing- factoring in
India- forfeitures- Kalyanasundaram committee recommendation
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, lOMoARcPSD|53991452
Financial services
Unit-1
PART- A 2MARK
1. What do you mean by financial services?
The term <financial services= in a broad sense mean <mobilizing and allocating
saving=. Thus, it includes all activities involved in the transformation of saving into
investment.
2. Write any two features of financial services.
It is a customer-intensive industry. Identification of need and wants of customer is
the first step. It will help the financial service firms to design the financial
strategy, which gives due respect to costs, liquidity and maturity consideration.
Demand and supply must be properly balanced.
3. Define merchant banking.
The standard definition to the word >merchant bank? is given under:
<Merchant banking means any person who is engaged in the business of issue
management either by making arrangements regarding selling, buying, underwriting or
subscribing to the securities underwriter, manager, consultant, advisor or rendering
corporate advisory in relating to such issue management=.
4. What do you mean by merchant banking?
<An organization that underwrite corporate securities and advise clients on issue like
corporate mergers, etc. involved in the ownership of commercial ventures=.
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5. Write a short note on public issue.
By using prospectus, companies raise fund from the public. This is a most common
method of raising fund. Companies issue prospectus to issue shares. Shares issues
through prospectus are in a fixed number.
6. What is right issue?
Existing share holders have pre-emptive right in taking part in the right issue. In right
issue, shares are offered to existing share holders according to the proportion of their
share holding.
7. What is private placement?
The direct sale of shares by a company to investors is called private placement. No
prospects are issued in private placement. Private placement covers equity shares,
preference shares and debentures.
8. Write a note on >Project Counselling?.
Project counseling includes preparation of project reports, deciding upon the financing
pattern to finance to the cost of the project and apprising project report the financial
institutions or banks.
9. Write a note on portfolio management.
Portfolio management refers to maintaining proper combination of securities in a
manner that they give maximum return with minimum risk.
10. Write a note on issue management.
Management of issue involes marketing of corporate securities viz., equity shares,
preference shares and debentures or bonds by offering them to public.
Downloaded by kuchy kuchy ()
387 16 Ccccm 15-16 Cccbm 15-16 Cccac 15 202005
1810281329
Financial Management (University of Delhi)
Scan to open on Studocu
Studocu is not sponsored or endorsed by any college or university
Downloaded by kuchy kuchy ()
, lOMoARcPSD|53991452
Financial services
Unit-1
Introduction to financial services- Merchant banking, meaning- Scope, function- Management
of new issue-Indian experience-Securities And Exchange Board of India (SEBI) guidelines.
Unit-2
Mutual fund: Meaning- types- function- advantages- institution involved- UTI, LIC, and
commercial bank entry of private sector- performances- growth of mutual funds in India- SEBI
guidelines- AMC.
Unit-3
Lease financing: The concept- merits & demerits of leasing- types- the Indian leasing scenario.
Unit-4
Hire purchase: meaning- RBI guidelines- H.P & Transport Industry- Lease Vs H.P- Problems
& prospect of hire purchase in India
Unit-5
Factoring: concepts-signification- types- factoring mechanism- factory Vs leasing- factoring in
India- forfeitures- Kalyanasundaram committee recommendation
Downloaded by kuchy kuchy ()
, lOMoARcPSD|53991452
Financial services
Unit-1
PART- A 2MARK
1. What do you mean by financial services?
The term <financial services= in a broad sense mean <mobilizing and allocating
saving=. Thus, it includes all activities involved in the transformation of saving into
investment.
2. Write any two features of financial services.
It is a customer-intensive industry. Identification of need and wants of customer is
the first step. It will help the financial service firms to design the financial
strategy, which gives due respect to costs, liquidity and maturity consideration.
Demand and supply must be properly balanced.
3. Define merchant banking.
The standard definition to the word >merchant bank? is given under:
<Merchant banking means any person who is engaged in the business of issue
management either by making arrangements regarding selling, buying, underwriting or
subscribing to the securities underwriter, manager, consultant, advisor or rendering
corporate advisory in relating to such issue management=.
4. What do you mean by merchant banking?
<An organization that underwrite corporate securities and advise clients on issue like
corporate mergers, etc. involved in the ownership of commercial ventures=.
Downloaded by kuchy kuchy ()
, lOMoARcPSD|53991452
5. Write a short note on public issue.
By using prospectus, companies raise fund from the public. This is a most common
method of raising fund. Companies issue prospectus to issue shares. Shares issues
through prospectus are in a fixed number.
6. What is right issue?
Existing share holders have pre-emptive right in taking part in the right issue. In right
issue, shares are offered to existing share holders according to the proportion of their
share holding.
7. What is private placement?
The direct sale of shares by a company to investors is called private placement. No
prospects are issued in private placement. Private placement covers equity shares,
preference shares and debentures.
8. Write a note on >Project Counselling?.
Project counseling includes preparation of project reports, deciding upon the financing
pattern to finance to the cost of the project and apprising project report the financial
institutions or banks.
9. Write a note on portfolio management.
Portfolio management refers to maintaining proper combination of securities in a
manner that they give maximum return with minimum risk.
10. Write a note on issue management.
Management of issue involes marketing of corporate securities viz., equity shares,
preference shares and debentures or bonds by offering them to public.
Downloaded by kuchy kuchy ()
