Bankng and Financial Services

Syllabus

FM-304: Banking and Financial Services

Max. Marks: 100                                                                                                                                   External: 70

Time: 3 Hours                                                                                                                         Internal: 30                                                                                          Overview of Financial Services – Overview, Environment and Importance of Financial Services in An Economy,  Evaluation and Role of Financial Services Companies in India.

Securitization Concept – Securitization as a Funding Mechanism, Securitization in India; Merchant Banking – Nature and Scope, Regulation of Merchant Banking Activity, SEBI Guidelines for Public Issues.

Introduction to Equipment Leasing – Introduction, History and Development of Leasing, Concept and Classification, Evolution of Indian Leasing Industry, Legal Aspects of Leasing, Tax Aspects of Leasing, Appraisal Criteria, Risks in Leasing Business, Lease Evaluation – the Lessee’s Angle, the Lessor’s Angle; Hire Purchase – Concept, Characteristics, Mathematical Evaluation, Legal, tax and Accounting Aspects, Leasing vs. Hire-Purchase. 

Mutual Funds (MFs) – Evolution, Types, Regulation of MFs, Organization, Structure, Performance Evaluation, and Tax Treatment of MF Schemes, MF in India.

Credit Rating – Concept, Rationale, Process, Methodology, SEBI Regulations for Credit Rating, Consumer Finance – Role of Consumer Credit in the Financial System, Features, Legal Framework, Credit Screening Methods, Innovative Structuring of Consumer Credit Transactions, Credit Cards – Concept, Types, Billing and Payment, Settlement Procedure, Mechanism of Transactions.

Factoring – Concept, Forms, Functions of Factor, Legal Aspects, Evaluation of Factoring, Factoring Disputes, Factoring vs. Forfeiting, Factoring vis-à-vis Bill Discounting, Bought Out Deals: Meaning and Nature; Mechanisms of Bought out Deals; Advantages; The Present Scenario. 

Venture Capital (VC) – Nature and Scope, Role of Venture Capitalists and Private Equity Firms, Types of Venture Capital funds, VC Investment Process, Evaluation Criteria, Limitations, VC in India. Depository: Concept, Depository Participants; Functions of Depository System; Benefits of Depository.