This document provides an overview of financial services and their regulation. It defines financial services as activities involving the mobilization and allocation of savings, including transforming savings into investments. Financial services can also be called financial intermediation, which involves mobilizing funds from savers and making them available to those who need them, particularly corporations. The scope of financial services covers traditional activities like underwriting new issues, secondary market dealing, and money market instruments, as well as modern activities like project advisory services, mergers and acquisitions planning, and capital restructuring guidance. Financial regulation establishes rules and policies to govern the financial system, maintain stability, and create a fair environment through bodies that control markets and enforce rules with objectives like sustaining confidence, ensuring

1. Financial services
Branch -: MBA(4th sem)
Batch -: 2018-2020
Submitted to-: Ms. Alka Sood
Submitted by-: Ridhi Yadav

2. Meaning of financial services
•In general, all types of activities, which are of a financial nature
could be brought under the term 'financial services'. The term
financial services in a broad, sense means "mobilizing and allocating
savings". Thus it includes all activities involved in the transformation
of savings into investment.

3. •Financial services can also be called 'financial intermediation'.
Financial intermediation is a process by which funds are mobilizing
from a large number of savers and make them available to all those
who are in need of it and particularly to, corporate customers.
•Thus, financial services sector is a key are a and it is very vital for
industrial developments. A well developed financial services
industry is absolutely necessary to mobilize the savings and to
allocate them to various investable channels and hereby to promote
industrial development in a country.

4. Scope of Financial Services
•Financial services cover a wide range of activities. They can
be broadly classified into two, namely:
i. Traditional Activities
ii. Modern activities.

5. Traditional Activities
Traditionally, the financial intermediaries have been rendering
a wide range of services encompassing both capital and money
market activities. They can be grouped under two head, viz.
a. Fund based activities and
b. Non-fund based activities.

6. Fund based activities :
The traditional services which come under fund based activities are the
following :
i. Underwriting or investment in shares, debentures, bonds, etc. of new issues
(primary market activities).
ii. Dealing in secondary market activities.
iii. Participating in money market instruments like commercial papers, certificate
of deposits, treasury bills, discounting of bills etc .
iv. Involving in equipment leasing, hire purchase, venture capital, seed capital,
dealing in foreign exchange market activities. Non fund based activities.

7. Non fund based activities
•Financial intermediaries provide services on the basis of non-fund
activities also.
•This can be called 'fee based‘ activity. Today customers, whether
individual or corporate, are not satisfied with mere provisions of
finance.
•They expect more from financial services companies. Hence a wide
variety of services, are being provided under this head.

8. •They include:
i. Managing die capital issue—i.e. management of pre-issue and
post-issue activities relating to the capital issue in accordance with
the SEBI guide lines and thus enabling the promoters to market their
issue.
ii. Making arrangements for the placement of capital and debt
instruments with investment institutions.
iii. Arrangement of funds from financial institutions for the clients
project cost or his working capital requirements.
iv. Assisting in the process of getting all Government and other
clearances.

9. Modern Activities
•Beside the above traditional services, the financial intermediaries
render innumerable services in recent times.
•Most of them are in the nature of non-fund based activity.
•In view of the importance, these activities have been in brief under
the head 'New financial products and services'.
•However, some of the modern services provided by them are given
in brief here under.

10. i. Rendering project advisory services right from the preparation of the
project report rill the raising of funds for starting the project with
necessary Government approvals.
ii. Planning for M&A and assisting for their smooth carryout.
iii. Guiding corporate customers in capital restructuring.
iv. Acting as trustees to the debentureholders.
v. Recommending suitable changes in the management structure and
management style with a view to achieving better results.

11. Financial regulation
• Financial system is among the most heavily regulated sectors of the economy.
• Banks are among the most heavily regulated of financial institutions.
• Regulations could sometimes impede development of banks.
• Regulations sometimes can’t prevent financial crisis.
• Are banking regulations beneficial.
Regulation-:
• Regulations are legal restrictions promulgated by govt. authority.
• Applies to a moving target
 calls for resources and expertise
• Political pressures.

12. Need for regulation
Regulation is a major aspect of the financial system. Financial regulation refers to the establishment
of certain rules and policies that govern the financial system of a country and proper and efficient
enforcement of these rules. It is important to regulate financial activities and maintain financial
stability in the country. The financial regulatory bodies do this by controlling the stock markets, bond
markets, foreign exchange markets, and various other segments of financial markets. These bodies
are established in order to create a customer friendly and fair environment in the financial markets,
which turn is essential to bring about economic growth. The main statutory objectives of regulatory
financial institutions include the following-:
1. Sustaining confidence in the financial markets is one of the most important objectives of
regulatory bodies.
2. Regulatory bodies need to need to ensure the most suitable level of consumer protection.
3. Encouraging public awareness about the financial market through imparting education programs
is also a part of the objectives of regulation.
4. The financial regulations are designed for the purpose of reducing financial crimes and frauds.

13. Thank you