This document provides an overview of financial services in India. It defines financial services as activities, benefits, and satisfactions connected to the sale of money. The main institutional providers of financial services in India are banks, non-banking financial companies, insurance companies, mutual funds, stock exchanges, housing finance societies, and leasing companies. The document discusses key characteristics of financial services like intangibility, being customer-oriented, and relying on information. It also outlines some problems in the Indian financial services sector like a lack of experience, limited innovations, and inefficient technology. The two broad categories of financial services are asset/fund-based services and fee/advisory-based services. Specific financial services discussed include equipment leasing,
This document discusses the nature and scope of financial services. It begins by defining financial services and intermediation. It then describes the traditional and modern activities of financial services, including fund-based activities like underwriting and non-fund based activities like advisory services. Modern activities include project advisory, M&A assistance, and risk management services. Revenue sources include fund-based income from interest and investments, and fee-based income from services. Financial innovation was necessitated by factors like low profitability, competition, economic liberalization, and improved customer expectations.
Fixed deposits allow investors to deposit money in a bank for a fixed duration and earn interest. FD terms can range from a few weeks to over 5 years. Interest rates vary depending on deposit amount and term. To open an FD, one needs valid ID/address proofs and can deposit cash or transfer funds from their bank account. FD offers higher interest than savings accounts with lower risk than stocks. However, funds cannot be withdrawn before maturity and interest rates may not keep pace with inflation. Premature withdrawals are allowed but penalized with lower interest rates. FD interest is taxed according to the deposit holder's tax bracket. Senior citizens and those with lump sums are common FD investors.
Financial services refer to services provided by the finance industry, such as banks, credit card companies, insurance companies, brokerages, and investment funds. There are two main types of financial services - fund or asset-based services, and fee-based services. Fund-based services involve raising funds through deposits, debt, or equity and investing those funds by lending or purchasing securities. These include services like leasing, housing finance, credit cards, venture capital, factoring, forfeiting, and bill discounting. Fee-based services involve earning income through fees, commissions, or brokerage on services like issue management, advisory, credit ratings, mutual funds, securitization, and stock broking.
This document provides an overview of factoring and forfaiting. It defines factoring as the sale of book debts by a firm to a financial institution, with the factor paying for the debts as they are collected. Forfaiting is similar but deals specifically with receivables from deferred payment exports. The key parties in each transaction and services provided are described. The document also compares factoring to bills discounting and forfaiting, outlines the various types of factoring, and summarizes the mechanics and stages involved in domestic and export factoring as well as forfaiting transactions.
Merchant banking provides capital to companies through equity investment rather than loans. It offers advisory services on corporate matters and investment banking services like mergers and acquisitions. Merchant banking started in Italy and France in the 17th-18th centuries and modern merchant banking began in London by financing foreign trade through bill acceptance. In India, merchant banking was introduced by Grindlays Bank in 1967 and other Indian and foreign banks subsequently established merchant banking divisions. Merchant banks invest their own capital and provide services primarily to large corporations and high-net-worth individuals rather than retail banking.
Credit ratings are evaluations of a debtor's ability to pay back debt, conducted by credit rating agencies. They use both public and private qualitative and quantitative information to assess risk of default. Credit ratings indicate the likelihood that bond obligations will be paid back and are used by investors to determine risk-return tradeoffs. Higher credit ratings indicate lower risk while lower ratings suggest higher risk of default. The document outlines the meaning and purpose of credit ratings, benefits to investors and companies, types of ratings, major credit rating agencies, and their methodology.
This document provides an overview of the evolution and types of financial services in India. It discusses how the sector has undergone liberalization since 1990, allowing private and foreign players to enter. The document defines financial services as services related to mobilizing and allocating savings. It outlines the evolution in three phases from 1960-2002, during which new institutions and instruments were established. The key characteristics of financial services are described, including their intangible nature and role in intermediating funds. The importance of financial services in channeling funds, debt management, and promoting savings is also highlighted. Finally, the document categorizes the main types of financial services in India into money markets, capital markets, retail markets, and wholesale markets.
The document discusses merchant banking, including its origin, services provided, and regulations. It began with merchants financing foreign trade through bill acceptance in London. Merchant bankers now provide services like project counseling, loan syndication, issue management, portfolio management, M&A advisory, and offshore finance. They are regulated by SEBI and must meet requirements for authorization category, capital adequacy, code of conduct, and more. While merchant banking offers many services, high capital norms and issuer non-cooperation pose challenges.
This document discusses the nature and scope of financial services. It begins by defining financial services and intermediation. It then describes the traditional and modern activities of financial services, including fund-based activities like underwriting and non-fund based activities like advisory services. Modern activities include project advisory, M&A assistance, and risk management services. Revenue sources include fund-based income from interest and investments, and fee-based income from services. Financial innovation was necessitated by factors like low profitability, competition, economic liberalization, and improved customer expectations.
Fixed deposits allow investors to deposit money in a bank for a fixed duration and earn interest. FD terms can range from a few weeks to over 5 years. Interest rates vary depending on deposit amount and term. To open an FD, one needs valid ID/address proofs and can deposit cash or transfer funds from their bank account. FD offers higher interest than savings accounts with lower risk than stocks. However, funds cannot be withdrawn before maturity and interest rates may not keep pace with inflation. Premature withdrawals are allowed but penalized with lower interest rates. FD interest is taxed according to the deposit holder's tax bracket. Senior citizens and those with lump sums are common FD investors.
Financial services refer to services provided by the finance industry, such as banks, credit card companies, insurance companies, brokerages, and investment funds. There are two main types of financial services - fund or asset-based services, and fee-based services. Fund-based services involve raising funds through deposits, debt, or equity and investing those funds by lending or purchasing securities. These include services like leasing, housing finance, credit cards, venture capital, factoring, forfeiting, and bill discounting. Fee-based services involve earning income through fees, commissions, or brokerage on services like issue management, advisory, credit ratings, mutual funds, securitization, and stock broking.
This document provides an overview of factoring and forfaiting. It defines factoring as the sale of book debts by a firm to a financial institution, with the factor paying for the debts as they are collected. Forfaiting is similar but deals specifically with receivables from deferred payment exports. The key parties in each transaction and services provided are described. The document also compares factoring to bills discounting and forfaiting, outlines the various types of factoring, and summarizes the mechanics and stages involved in domestic and export factoring as well as forfaiting transactions.
Merchant banking provides capital to companies through equity investment rather than loans. It offers advisory services on corporate matters and investment banking services like mergers and acquisitions. Merchant banking started in Italy and France in the 17th-18th centuries and modern merchant banking began in London by financing foreign trade through bill acceptance. In India, merchant banking was introduced by Grindlays Bank in 1967 and other Indian and foreign banks subsequently established merchant banking divisions. Merchant banks invest their own capital and provide services primarily to large corporations and high-net-worth individuals rather than retail banking.
Credit ratings are evaluations of a debtor's ability to pay back debt, conducted by credit rating agencies. They use both public and private qualitative and quantitative information to assess risk of default. Credit ratings indicate the likelihood that bond obligations will be paid back and are used by investors to determine risk-return tradeoffs. Higher credit ratings indicate lower risk while lower ratings suggest higher risk of default. The document outlines the meaning and purpose of credit ratings, benefits to investors and companies, types of ratings, major credit rating agencies, and their methodology.
This document provides an overview of the evolution and types of financial services in India. It discusses how the sector has undergone liberalization since 1990, allowing private and foreign players to enter. The document defines financial services as services related to mobilizing and allocating savings. It outlines the evolution in three phases from 1960-2002, during which new institutions and instruments were established. The key characteristics of financial services are described, including their intangible nature and role in intermediating funds. The importance of financial services in channeling funds, debt management, and promoting savings is also highlighted. Finally, the document categorizes the main types of financial services in India into money markets, capital markets, retail markets, and wholesale markets.
The document discusses merchant banking, including its origin, services provided, and regulations. It began with merchants financing foreign trade through bill acceptance in London. Merchant bankers now provide services like project counseling, loan syndication, issue management, portfolio management, M&A advisory, and offshore finance. They are regulated by SEBI and must meet requirements for authorization category, capital adequacy, code of conduct, and more. While merchant banking offers many services, high capital norms and issuer non-cooperation pose challenges.
Financial services refer to services provided by the finance industry, including banks, credit card companies, insurance companies, brokerages, and investment funds. These institutions offer products and services like loans, insurance, credit cards, investment opportunities, money management, and market information. Financial services play important roles in facilitating economic transactions, mobilizing savings, allocating capital, monitoring managers, and transforming risk. They also help people better manage their finances and make investments.
Forfeiting is the process of purchasing a company's export receivables at a discount for cash. It involves an exporter selling its receivables from export sales to a forfeiting company, which then receives payment from the importer. This converts deferred export payments into immediate cash for the exporter, while absorbing the risks normally borne by exporters such as political and currency risk. Forfeiting provides exporters with liquidity and freedoms them from credit administration and risk, while absorbing the importer's risk for the forfeiting company in exchange for a discount on the receivables.
This document discusses various international financial instruments, including:
1. Equity instruments such as American Depository Receipts (ADRs) and Global Depository Receipts (GDRs) which allow foreign companies to issue shares in domestic markets.
2. Debt instruments including foreign bonds issued domestically, external bonds denominated in foreign currency, Euro bonds issued internationally, and European bonds issued collectively by Euro nations.
3. Key details are provided on ADRs, GDRs, foreign bonds such as Yankee bonds, and Euro bonds which were first issued in 1963 to fund Italy's motorway network.
This document presents information on bonds. It begins with definitions of a bond, including that a bond is a long-term contract where a borrower agrees to pay interest and return the principal to holders on specific dates. The document then discusses characteristics of bonds such as par value, coupon interest rate, and maturity date. It also covers various types of bonds like zero coupon bonds, floating rate bonds, perpetual bonds, and others. In total, the document provides an overview of what bonds are and various bond types.
The complete analysis of Cash Credit given by Bank. The ppt covers topics like definition, objectives,advantages, disadvantages,Drawing Power, calculation of Interest and Drawing power
Forfaiting is a mechanism where an exporter's rights to export receivables such as letters of credit or bills of exchange are purchased by a financial intermediary called a forfaiter without recourse to the exporter. This converts the exporter's credit sale into a cash sale, absolving the exporter of political or conversion risks while providing up to 100% financing without recourse. The key parties involved are the exporter, importer, forfaiting agency which is typically the exporter's bank, the importer's guaranteeing bank, and domestic export-import banks. Forfaiting provides liquidity to exporters, fixes the financing rate, and keeps the transactions confidential.
This document summarizes the international bond market. It defines international bonds as bonds issued in a currency other than that of the investor or broker, including eurobonds issued in a foreign currency and foreign bonds issued by a foreign government or corporation. International bonds are further classified as euro bonds denominated in a currency but sold internationally, foreign bonds offered by a foreign borrower domestically, and global bonds issued and traded outside the currency's home country. The document also lists some key features and types of international bonds such as corporate bonds, government bonds, zero-coupon bonds, convertible bonds, and floating rate notes.
Currency derivatives is a kind of new class of assets available for investment. Please go through this PPT which will give you some idea about currency & Currency derivatives.
The document discusses international money markets and instruments. It describes that the international monetary system involves managing balance of payments, financing payments imbalances, and providing international money reserves. It then defines various money market instruments like Treasury bills, commercial paper, banker's acceptances, certificates of deposits, and repurchase agreements. It provides details on their issuers, investors, trading processes, and methods of calculating yields.
This document discusses leasing, which allows one party to use an asset owned by another party. There are two main types of leases: operating/service leases and financial/net leases. Operating leases provide maintenance services while financial leases do not. Leasing offers advantages over ownership like facilitating asset acquisition and improving financial position, but parties must consider tax and ownership implications.
The document discusses managing interest rate risk in banks, including defining interest rate risk, describing the types of interest rate risks such as repricing risk and basis risk, and strategies for measuring and controlling interest rate risk such as following Basel Committee recommendations and sound risk management practices.
This document provides an overview of discounting, factoring, and forfaiting. It includes a table assigning topics to different students for research projects. The introduction defines discounting as converting future values to present values. Bill discounting involves a bank buying a bill from a customer before its due date and crediting the customer's account, less a discount charge. Factoring involves a financial organization purchasing a manufacturer's receivables and assuming credit and collection responsibilities. Forfaiting specifically deals with receivables related to deferred payment exports, where the exporter surrenders rights to payment to a forfaiter in exchange for upfront cash.
The document discusses financial services and the Indian financial system. It defines financial services as those provided by financial institutions, such as banking services, foreign exchange services, investment services, and insurance services. It then describes the key components of the Indian financial system: financial services, financial markets, financial instruments, and financial institutions. It provides details on various financial concepts such as financial intermediaries, instruments, and markets. Finally, it briefly discusses types of financial services in India and international financial services.
This document discusses interest rate parity theory. It begins by defining spot and forward rates. Spot rates are prices for immediate settlement, while forward rates refer to rates for future currency delivery adjusted for cost of carry. Interest rate parity theory states that interest rate differentials between currencies will be reflected in forward premiums or discounts. The theory prevents arbitrage opportunities by making returns equal whether investing domestically or abroad when measured in the home currency. The document provides an example of covered and uncovered interest rate parity. Covered parity involves hedging exchange rate risk while uncovered parity does not. Empirical evidence shows uncovered parity often fails while covered parity generally holds for major currencies over short time horizons.
This document is a presentation on international finance that was given by Dr. Mital Bhayani. The presentation defines international finance as monetary transactions between two or more countries. It outlines the learning objectives, which are to explain the meaning of international finance, appreciate its importance and goals, describe its nature, compare it to domestic finance, and outline its scope. The presentation then covers the meaning, importance, nature, scope of international finance and how a country's economic wellbeing relates to globalization. It discusses key aspects like exchange rates, foreign exchange risk, political risk, and market imperfections.
Factoring is a financial transaction where a business sells its accounts receivable to a third party at a discount in exchange for immediate cash. There are various types of factoring, including recourse factoring, where the client refunds amounts for defaults, and non-recourse factoring, where the factor's obligation is absolute. Factoring provides businesses with immediate cash flow and transfers the credit risk to the factoring institution. However, it is a relatively expensive source of financing.
Foreign exchange market and it's structure in indiaStudsPlanet.com
The document discusses the structure and features of the foreign exchange market. It begins by defining foreign exchange and describing the major participants in the exchange market, including commercial banks, money changers, and the Foreign Exchange Dealers Association of India (FEDAI). It then outlines the roles and regulations of various authorized entities that can participate in the market, such as authorized dealers and restricted authorized dealers. Finally, it discusses key characteristics of the foreign exchange market, including that it is a 24-hour global market connected by communication channels with a daily turnover of $2.75-3 trillion.
Introduction to financial system and financial servicesdrpvkhatrissn
The document provides an introduction to financial systems and financial services. It defines key terms like financial assets, financial intermediaries, and financial markets. It describes the major components of India's financial system including banks, capital markets, money markets, and development institutions. It also outlines some weaknesses of India's historical financial system as well as modern financial services and products that have emerged.
The document discusses various aspects of new issue markets, including the meaning, functions, and methods of floating new issues. It describes the main functions of new issue markets as facilitating the transfer of resources from savers to users and mobilizing funds from savers to borrowers. The key methods of floating new issues discussed are public issues, rights issues, private placements, and preferential issues. It also covers various other topics related to new issue markets such as pricing of issues, offer documents, listing of securities, and participants in securities markets.
This document is a resume for Shichong Xie that outlines his education and experience. He received an Associate of Art in Architecture from Valencia Community College between 2007-2010 and is currently a candidate for a Bachelor of Architecture from Boston Architectural College between 2010-present. His experience includes internships at several architecture firms in Boston, including DREAM Collaborative LLC, Michael Kim Associates, and SchweizerWaldroff Architects Incorporated. His roles have included designer, intern, and fabricator assistant. Notable projects listed are the Enfold Pavilion installation and the Chinatown Library Furniture Project.
The document provides a summary of a candidate's qualifications for an interior design position. It outlines their education in interior design, relevant work experience at design firms developing renderings and construction documents, skills in design software, and philosophy of taking all opinions into consideration to create the best solutions.
Financial services refer to services provided by the finance industry, including banks, credit card companies, insurance companies, brokerages, and investment funds. These institutions offer products and services like loans, insurance, credit cards, investment opportunities, money management, and market information. Financial services play important roles in facilitating economic transactions, mobilizing savings, allocating capital, monitoring managers, and transforming risk. They also help people better manage their finances and make investments.
Forfeiting is the process of purchasing a company's export receivables at a discount for cash. It involves an exporter selling its receivables from export sales to a forfeiting company, which then receives payment from the importer. This converts deferred export payments into immediate cash for the exporter, while absorbing the risks normally borne by exporters such as political and currency risk. Forfeiting provides exporters with liquidity and freedoms them from credit administration and risk, while absorbing the importer's risk for the forfeiting company in exchange for a discount on the receivables.
This document discusses various international financial instruments, including:
1. Equity instruments such as American Depository Receipts (ADRs) and Global Depository Receipts (GDRs) which allow foreign companies to issue shares in domestic markets.
2. Debt instruments including foreign bonds issued domestically, external bonds denominated in foreign currency, Euro bonds issued internationally, and European bonds issued collectively by Euro nations.
3. Key details are provided on ADRs, GDRs, foreign bonds such as Yankee bonds, and Euro bonds which were first issued in 1963 to fund Italy's motorway network.
This document presents information on bonds. It begins with definitions of a bond, including that a bond is a long-term contract where a borrower agrees to pay interest and return the principal to holders on specific dates. The document then discusses characteristics of bonds such as par value, coupon interest rate, and maturity date. It also covers various types of bonds like zero coupon bonds, floating rate bonds, perpetual bonds, and others. In total, the document provides an overview of what bonds are and various bond types.
The complete analysis of Cash Credit given by Bank. The ppt covers topics like definition, objectives,advantages, disadvantages,Drawing Power, calculation of Interest and Drawing power
Forfaiting is a mechanism where an exporter's rights to export receivables such as letters of credit or bills of exchange are purchased by a financial intermediary called a forfaiter without recourse to the exporter. This converts the exporter's credit sale into a cash sale, absolving the exporter of political or conversion risks while providing up to 100% financing without recourse. The key parties involved are the exporter, importer, forfaiting agency which is typically the exporter's bank, the importer's guaranteeing bank, and domestic export-import banks. Forfaiting provides liquidity to exporters, fixes the financing rate, and keeps the transactions confidential.
This document summarizes the international bond market. It defines international bonds as bonds issued in a currency other than that of the investor or broker, including eurobonds issued in a foreign currency and foreign bonds issued by a foreign government or corporation. International bonds are further classified as euro bonds denominated in a currency but sold internationally, foreign bonds offered by a foreign borrower domestically, and global bonds issued and traded outside the currency's home country. The document also lists some key features and types of international bonds such as corporate bonds, government bonds, zero-coupon bonds, convertible bonds, and floating rate notes.
Currency derivatives is a kind of new class of assets available for investment. Please go through this PPT which will give you some idea about currency & Currency derivatives.
The document discusses international money markets and instruments. It describes that the international monetary system involves managing balance of payments, financing payments imbalances, and providing international money reserves. It then defines various money market instruments like Treasury bills, commercial paper, banker's acceptances, certificates of deposits, and repurchase agreements. It provides details on their issuers, investors, trading processes, and methods of calculating yields.
This document discusses leasing, which allows one party to use an asset owned by another party. There are two main types of leases: operating/service leases and financial/net leases. Operating leases provide maintenance services while financial leases do not. Leasing offers advantages over ownership like facilitating asset acquisition and improving financial position, but parties must consider tax and ownership implications.
The document discusses managing interest rate risk in banks, including defining interest rate risk, describing the types of interest rate risks such as repricing risk and basis risk, and strategies for measuring and controlling interest rate risk such as following Basel Committee recommendations and sound risk management practices.
This document provides an overview of discounting, factoring, and forfaiting. It includes a table assigning topics to different students for research projects. The introduction defines discounting as converting future values to present values. Bill discounting involves a bank buying a bill from a customer before its due date and crediting the customer's account, less a discount charge. Factoring involves a financial organization purchasing a manufacturer's receivables and assuming credit and collection responsibilities. Forfaiting specifically deals with receivables related to deferred payment exports, where the exporter surrenders rights to payment to a forfaiter in exchange for upfront cash.
The document discusses financial services and the Indian financial system. It defines financial services as those provided by financial institutions, such as banking services, foreign exchange services, investment services, and insurance services. It then describes the key components of the Indian financial system: financial services, financial markets, financial instruments, and financial institutions. It provides details on various financial concepts such as financial intermediaries, instruments, and markets. Finally, it briefly discusses types of financial services in India and international financial services.
This document discusses interest rate parity theory. It begins by defining spot and forward rates. Spot rates are prices for immediate settlement, while forward rates refer to rates for future currency delivery adjusted for cost of carry. Interest rate parity theory states that interest rate differentials between currencies will be reflected in forward premiums or discounts. The theory prevents arbitrage opportunities by making returns equal whether investing domestically or abroad when measured in the home currency. The document provides an example of covered and uncovered interest rate parity. Covered parity involves hedging exchange rate risk while uncovered parity does not. Empirical evidence shows uncovered parity often fails while covered parity generally holds for major currencies over short time horizons.
This document is a presentation on international finance that was given by Dr. Mital Bhayani. The presentation defines international finance as monetary transactions between two or more countries. It outlines the learning objectives, which are to explain the meaning of international finance, appreciate its importance and goals, describe its nature, compare it to domestic finance, and outline its scope. The presentation then covers the meaning, importance, nature, scope of international finance and how a country's economic wellbeing relates to globalization. It discusses key aspects like exchange rates, foreign exchange risk, political risk, and market imperfections.
Factoring is a financial transaction where a business sells its accounts receivable to a third party at a discount in exchange for immediate cash. There are various types of factoring, including recourse factoring, where the client refunds amounts for defaults, and non-recourse factoring, where the factor's obligation is absolute. Factoring provides businesses with immediate cash flow and transfers the credit risk to the factoring institution. However, it is a relatively expensive source of financing.
Foreign exchange market and it's structure in indiaStudsPlanet.com
The document discusses the structure and features of the foreign exchange market. It begins by defining foreign exchange and describing the major participants in the exchange market, including commercial banks, money changers, and the Foreign Exchange Dealers Association of India (FEDAI). It then outlines the roles and regulations of various authorized entities that can participate in the market, such as authorized dealers and restricted authorized dealers. Finally, it discusses key characteristics of the foreign exchange market, including that it is a 24-hour global market connected by communication channels with a daily turnover of $2.75-3 trillion.
Introduction to financial system and financial servicesdrpvkhatrissn
The document provides an introduction to financial systems and financial services. It defines key terms like financial assets, financial intermediaries, and financial markets. It describes the major components of India's financial system including banks, capital markets, money markets, and development institutions. It also outlines some weaknesses of India's historical financial system as well as modern financial services and products that have emerged.
The document discusses various aspects of new issue markets, including the meaning, functions, and methods of floating new issues. It describes the main functions of new issue markets as facilitating the transfer of resources from savers to users and mobilizing funds from savers to borrowers. The key methods of floating new issues discussed are public issues, rights issues, private placements, and preferential issues. It also covers various other topics related to new issue markets such as pricing of issues, offer documents, listing of securities, and participants in securities markets.
This document is a resume for Shichong Xie that outlines his education and experience. He received an Associate of Art in Architecture from Valencia Community College between 2007-2010 and is currently a candidate for a Bachelor of Architecture from Boston Architectural College between 2010-present. His experience includes internships at several architecture firms in Boston, including DREAM Collaborative LLC, Michael Kim Associates, and SchweizerWaldroff Architects Incorporated. His roles have included designer, intern, and fabricator assistant. Notable projects listed are the Enfold Pavilion installation and the Chinatown Library Furniture Project.
The document provides a summary of a candidate's qualifications for an interior design position. It outlines their education in interior design, relevant work experience at design firms developing renderings and construction documents, skills in design software, and philosophy of taking all opinions into consideration to create the best solutions.
The document summarizes different businesses and locations - Publix grocery store, Le Mekong Vietnamese restaurant, a Shell gas station, Motel 6 hotel, and Coca-Cola factory. For each, it lists the goods and services provided, key factors of production used, identified opportunity costs, and potential trade-offs. The businesses represent different industries like food, retail, hospitality, and manufacturing.
- The document is a resume for Muhammad Abbas, who is looking for an opportunity to utilize his existing skills and develop professionally and personally.
- Abbas has over 5 years of work experience in textile mills, including roles in merchandising, operations, HR, administration, planning, and accounting. He also has a Bachelor of Commerce degree that is in progress.
- His skills include computer programs like MS Office, Tally ERP, and Peachtree. He is proficient in tasks like auditing, inventory management, data entry, accounting, and production planning.
The bullettrain entrepreneur new book is herePeter Ong
This document contains advice for small and medium enterprises (SMEs) on finding purpose and passion, prioritizing team alignment, leveraging processes, maintaining consistency, balancing the five pillars of a business, and conquering fears. It also announces two promotions for a new book on 11 principles for bullet train entrepreneurship where the first is a buy one get one free deal and the second offers a free book to 10 local entrepreneurs who provide their business vision.
LA REPUBLIQUE DU CAMEROUN By OLUDELE MAFOLASIRE AND GANIAT SODEKEFrenchy Associates
Episode 3 of the LE MONDE FRANCOPHONE series where an in-depth research into the 29+ French Speaking Countries in the world is been conducted by Oludele Mafolasire and Ganiat Sodeke of Frenchy Associates, Nigeria. This episode is an overview of LA REPUBLIQUE DU CAMEROUN
Remya Kitchu is a biology teacher currently working at Addu High School in the Maldives. She has over 3 years of experience teaching O-Level and A-Level biology in the Maldives. Prior to her current role, she worked as a teacher in India from 2007-2010 and had experience in office administration and accounting while working in Dubai from 2005-2006. She holds a B.Ed. degree in biology, higher diploma in cooperation and business management, and bachelor's degree in science. She is proficient in Microsoft Office, databases, programming languages, and web technologies.
AN OVERVIEW OF FINANCIAL SERVICES IN INDIAN CONTEXTSherri Cost
The document provides an overview of financial services in the Indian context. It discusses various fund-based and non-fund based financial services offered in India such as equipment leasing, hire purchase, bill discounting, venture capital, housing finance, insurance, factoring, forfaiting, and mutual funds. It also discusses the regulatory frameworks and major players involved in different financial services in India.
The document discusses the evolution and growth of financial services in India. It begins by covering the meaning and definitions of financial services, as well as the major kinds of financial services like leasing, merchant banking, and mutual funds. It then describes how the financial services sector in India transformed after the economic liberalization of the 1990s, which opened the sector to private and foreign players. Finally, it discusses the various constituents of the financial services industry in India like financial instruments, market players, specialized institutions, and regulatory bodies.
The document discusses the evolution and importance of the financial services industry in India. It begins by explaining how the industry has grown since economic liberalization in the 1990s. It then defines financial services as activities that facilitate financial transactions and the mobilization and allocation of savings. The document outlines key functions of financial services like facilitating transactions, mobilizing savings, allocating capital, and monitoring managers. It also discusses characteristics of financial services like intangibility, inseparability, and perishability. Finally, it examines the importance of financial services for economic growth, promotion of savings, and capital formation.
This document discusses financial services in India. It defines financial services as activities that mobilize and allocate savings. Financial services can be classified into capital market intermediaries and money market intermediaries. The scope of financial services has expanded and now includes both traditional activities like underwriting shares and modern activities like merchant banking, mutual funds, and derivatives. However, the financial services sector in India faces challenges like a lack of qualified personnel, lack of transparency, and lack of specialized expertise. Overall, the document provides an overview of the classification, activities, products, and challenges of the financial services industry in India.
The financial system comprises intermediaries, markets, and instruments that transform savings into investments. It provides financial inputs that are crucial for economic development and improving standards of living. The system involves the activities of saving, financing, and investment. It includes various institutions like banks, non-banking financial companies, and financial markets that facilitate transactions and allocate resources. Financial instruments are traded in these markets to raise capital. The system also provides important financial services. However, the Indian financial system faces some weaknesses like a lack of coordination and inactive capital markets.
The financial system plays a crucial role in economic development by facilitating the transfer of resources from savers to investors. It consists of financial institutions, financial markets, financial instruments, and financial services. Recent developments include the establishment of regulatory bodies like SEBI and reforms in the capital market, money market, and commercial banking sector. Capital market reforms involve the growth of stock exchanges, mutual funds, and electronic trading. Money market reforms include deregulating interest rates and developing new market instruments. Reforms in commercial banks feature reduced reserve requirements, interest rate deregulation, and increased operational autonomy.
The document discusses the financial system in India. It defines the financial system as comprising financial markets, instruments, and intermediation. It describes the key components of the Indian financial system including money markets, capital markets, forex markets, and credit markets. It outlines the role of the financial system in facilitating flow of funds from surplus to deficit units and promoting savings and investment. It also provides an overview of the development of the financial system in India and current challenges.
The document provides an overview of banking in India. It discusses the history and evolution of banking in India from the 19th century colonial era to modern times. It describes the key functions of banks as accepting deposits, granting loans, and performing other financial services. It also outlines various banking products and services that have emerged over time, from traditional savings and loans to newer investment products. Finally, it discusses the different channels through which banks offer their services, including branches, internet banking, mobile banking, ATMs, and telephone banking.
The document provides information on the Banking, Financial Services and Insurance (BFSI) sectors in India. It describes the key components of each sector. The banking sector section explains the functions of banks which include accepting deposits and granting loans. It also discusses the various types of banks operating in India. The financial services sector section covers types of financial services like capital markets, retail banking, and fee-based services. Finally, the insurance sector section defines insurance and describes the structure and key types of insurance products and services available in India. It concludes by highlighting the growing market size of the BFSI sectors in India.
The document provides an overview of Indian financial services. It begins by defining financial services as services provided in monetary terms that involve mobilizing and allocating savings. It then discusses the characteristics of financial services, noting they involve at least two parties, intermediate funds, are intangible, and must be customer-friendly. The document also covers the importance of financial services for economic development, employment, and ensuring availability of funds. It concludes by outlining the major types of financial services in India including retail, wholesale, money market, and capital market services.
The document provides an overview of Indian financial services. It begins by defining financial services as services provided in monetary terms that involve mobilizing and allocating savings. It then discusses the characteristics of financial services, noting they involve at least two parties, intermediate funds, are intangible, and must be customer-friendly. The document also covers the importance of financial services for economic development, employment, and ensuring availability of funds. It concludes by outlining the major types of financial services in India including retail, wholesale, money market, and capital market services.
finance sector in india - Harsh Katyal02HarshKatyal5
Banking: India’s banking sector comprises public sector banks, private sector banks, foreign banks, regional rural banks, and cooperative banks. The Reserve Bank of India (RBI) regulates and supervises banks to ensure financial stability and promote inclusive growth.
Capital Markets: India has well-developed capital markets, including stock exchanges like the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The Securities and Exchange Board of India (SEBI) regulates the capital markets, ensuring transparency and investor protection.
Insurance: The insurance sector in India has witnessed significant growth with the presence of both public and private insurance companies offering life, health, and general insurance products. The Insurance Regulatory and Development Authority of India (IRDAI) oversees the insurance industry.
Non-Banking Financial Companies (NBFCs): NBFCs play a vital role in providing financial services such as loans, leasing, hire purchase, and investment advisory services. They complement the banking sector by catering to the credit needs of diverse customer segments.
Microfinance: Microfinance institutions (MFIs) and self-help groups (SHGs) contribute to financial inclusion by providing small loans and financial services to low-income individuals and entrepreneurs, particularly in rural areas.
https://harshkatyal.digiuprise.online/finance-sector-in-india/
This document provides an overview of merchant banking and financial services. It discusses the concept and functions of merchant banking, including raising finance, promotional activities, advising on projects and expansions, and managing public issues. It outlines the regulations governing merchant bankers in India. It also defines financial services and discusses various types like banking, insurance, mutual funds. It explains the importance of financial services in facilitating transactions, ensuring liquidity, mobilizing savings, and enabling economic growth. Finally, it discusses online trading and the processes of dematerialization and re-materialization of shares in India.
"Financial Landscape of India: Trends, Challenges, and Opportunities"ShrutiSinghal47
The finance sector, also known as the financial services industry, encompasses a broad range of businesses and institutions that manage money, provide financial products, and facilitate financial transactions. It plays a critical role in the economy by allocating capital, managing risk, and facilitating the flow of funds between savers and borrowers.
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
Idea Cellular, the fifth largest telecom operator in India, plans to raise between Rs. 1,700-2,000 crore through an initial public offering (IPO) on the stock market. It has appointed investment banks like J.P. Morgan and Merrill Lynch to manage the IPO, which is expected to be launched by the end of January. Under SEBI rules, the company must float at least 10% of its shares, so it will sell 10-12% of its equity. The company's recent valuation in a private placement was Rs. 15,000 crore, so the IPO shares are expected to be priced at a 10-20% premium to that level. After the
Unit 3 (1).pptx financial services , custodian serviceBeastMahi1
The document discusses various types of financial services. It defines financial services as the economic services provided by the finance industry, which includes banks, credit unions, insurance companies, and other businesses that manage money. It then provides details on important financial services like banking, wealth management, mutual funds, insurance, stock markets, treasury instruments, consulting, and portfolio management. It also distinguishes between fund-based financial activities like leasing, hire purchase, and bill discounting, and non-fund-based activities such as merchant banking, credit rating, and loan syndication.
The document discusses the components of the Indian financial system, including financial institutions, financial markets, financial instruments, and financial services. It specifically focuses on the debt market as a key component. The debt market can be classified into the government securities market and the bond market. Government securities include instruments issued by central and state governments, while the bond market includes instruments issued by public and private sector entities. The debt market plays an important role in the Indian economy by efficiently mobilizing and allocating resources, financing government development activities, and transmitting monetary policy signals. It also provides greater funding avenues and reduces borrowing costs.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
The Rise of Generative AI in Finance: Reshaping the Industry with Synthetic DataChampak Jhagmag
In this presentation, we will explore the rise of generative AI in finance and its potential to reshape the industry. We will discuss how generative AI can be used to develop new products, combat fraud, and revolutionize risk management. Finally, we will address some of the ethical considerations and challenges associated with this powerful technology.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
1. Chapter--------------1
Introduction to Financial Services.
Introduction
Finance is the life blood of business. Thetwo main area of finance are:
1) Financial Management 2) Financial Services.
Financial Management is concerned with duties of the finance manager in an
organisation and who performthe duty of preparing budgets, financial
forecasting, cash management, credit analysis, investmentdecision making, fund
management etc.,. Financial Services is concerned with the design and delivery of
advice and Financial products to individuals and business in the area of Banking
and insurance, personalfinancial planning, investment in real and financial assets
etc.,. Financial Services constitute an important componentof the financial
system. Financial Services, through the network of element such as financial
institutions, financial markets and financial instruments, servethe need of
individuals, institutions and corporates. Considering its nature and importance,
financial services are regarded as the fourth element of the financial system.
Meaning And Concepts:
The term 'Financial Services'can be defined as, ''Activities, Benefits and
Satisfactions, connected with the sale of money, that offer to users and customers,
financial related value.'' Financial Serviceorganisation provides services to industrial
enterprises and ultimate consumer markets. Following are the institutional financial
servicesuppliers:
1) Banks and Non- Banking Finance Companies.
2) InsuranceCompanies
3) Mutual Fund Companies
4) Stock Exchanges
5) Housing finance societies.
2. 6) Leasing companies.
7) Credit Rating companies.
Features of Financial services:
Like any other service, the financial services havethe following characteristics:
i) Intangibility: For Financial services to be successfully created and marketed, the
institutions providing them must havea good image and enjoy the confidence of
their clients. Quality and innovativeness of serviceare the focus points for building
credibility and gaining the trustof the clients.
ii) Dynamic: Financial Services haveto be constantly redefined and redefined on the
basis of socio-economic changes occurring in the economy, such as disposable
income, standard of living, level of education, etc.,.
iii) Customer Orientation: The responsibility of any financial services organisation is
to protect customer's interest and it is not only important in banking and insurance,
but also in other sectors of the financial services.
iv) Inseparability: Thefunctions of production and supply of financial services have
to be carried out simultaneously. This calls for a perfect understanding between the
financial services firms and their clients.
v) Geographical Dispersion: FinancialServices musthave both appeal and wider
application. To ensure this, the serviceproviding organisation musthave massive
branch networks so that benefit of convenience are enjoyed by local, national and
international customers.
vi) Information Based: FinancialServices involves creation, dissemination, and use of
information. Information is the very important element in the creation of financial
services. Costof processing information is quite irrelevantin the best production
and supply of financial services.
Problems in the Financial Service Sector
The Indian financial services industry has been making rapid progress in the
financial services. In the pastrecession environment, this sector is fast integrating
with global financial markets. However, the financial servicesector faces many
problems, someof these problems are discussed below:
3. 1) Lack of Experience: To implement the financial serviceschemes, the institutions
and professionalbodies haveno specialised knowledgeto manage this sector in
India.
2) Limited Innovations: Thegrowth and development of financial systemis
measurablein terms of the width and depth of the rangeof products offered by it.
There has been limited innovation in the financial products. For instance, a number
of tailor-made and imaginatively designed financial products.
3) Inefficient Technology: One of the basic problem faced by Indian financialservices
firms is that they lack adequate and time tested technology to efficiently create and
deliver the financial products to their clients.
4) Restrictions in Operations: The scope of operations relating to financial service is
currently restricted to certain areas only. For example, the venture capital
operations in India is restricted to providefinance for start- ups, high-tech projects,
and to convertR&D efforts into Commercial production.
5) Lack of institutional mechanisms: There must be a wide range of financial services
available too. The establishment of a sound institutional mechanism, whereby the
existing financial institutions, banks and insurancecompanies are allowed to open
fully-fledged subsidiaries, is therefore, called for.
Types of Financial Services
Financial Services provided by various financial institutions, commercial banks
and merchantbankers can be broadly classified into two categories:
1) Asset Based/Fund based Services.
2) Fee Based/Advisory Services.
The Fund based/AssetBased Services include:-
a. Equipment Lease Financing.
b. Hire Purchaseand Consumer Credit.
c. Venture capital.
d. Housing Finance.
e. Bill discounting.
f. Factoring.
4. g. InsuranceServices.
h. Securitization of debt.
The Fee based/Advisory Services include:-
a. IssueManagement.
b. Portfolio Management.
c. Loan Syndication.
d. Capital Restructuring.
e. Stock Broking.
f. Credit Rating.
The various Fund based and Fee based financial services provided by banking and
non-banking financial institutions are discussed below:
(1) Equipment Leasing/ Lease Financing
Lease is a legal contract, and thus enforceable by all parties under the
contract law of applicable jurisdiction. A lease should be contracted to a license,
which may entitle a person (called a licensee) to useproperty, but which is subject
to termination at the will of the owner of the property (called the licensor). Leasing
is an alternative to purchase of an asset in order to acquire the services of that asset.
By leasing an assetthe lessee essentially acquires it use value fromthe lessor, who
actually purchaseand owns the assets. Thelease agreement provides for a number
of obligations on the part of the lessee which do not form partof his implied
obligations under the legislative frame work. The legal framework and the lease
agreements provides the regulatory framework of lease financing in India. Leasing
industry in India is a growing business activity in the country.
(2) Hire Purchaseand Consumer Credit
Itis an agreement under which goods are let on hire and under which the
hirer has an option to purchasethem in accordancewith the terms of the
agreement. Hire purchaseis used as a sourceof finance, usually for acquiring
relatively low cost assets such as auto-mobiles, office equipments etc.,. Consumer
credit includes all assetbased financing plans offered to individuals to help them for
acquiring durable consumer goods in a consumer credit transaction. The consumer
pay a partof the cash purchaseprice at the time of the delivery of the goods and
5. pay the balance amount with interest over a specified period of time. Itis an asset
based financial servicein India.
(3) Venture Capital
Venture Capital means the investmentof long term risk equity finance where
the primary reward for its provider, the venture capitalist, is an eventual capital gain,
rather than interest income or dividend yield. Venturecapital financing is one of the
most recent entrants in the Indian Capital Market. Moreover the guidelines issued
by the governmentfor the setting up of venture capital companies are too non-
restrictive and unrealistic and have come in the way of their growth. A venture
capital investment is illiquid, i.e., not subjectto repaymenton demand as with an
overdraftor following a loan repaymentschedule. The investment is realised when
the company is sold or achieve a stock marketlisting. It is lost when as sometimes
occurs, the company goes into liquidation. Venture Capital is risk financing at its
extreme.
(4) Housing Finance
The responsibility to providehousing finance rested with the governmentof
India till the mid-80s. Thesetting up of the National Housing Bank (NHB), a fully
owned subsidiary of the Reserve Bank of India (RBI) in 1998 as the apex institution,
marked the beginning of the emergence of housing finance as a fund based financial
servicein India. TheNHB was established in 1988 under the NHB Act, 1987, to
operate as a principal agency to promote Housing Finance Institutions (HFIs), atboth
local and regional level, and to providefinancial and other supportto them. The HFIs
include institutions, whether incorporated or not, that primarily transactor have as
one of their principal objects viz. Transacting business of providing finance for
housing, either directly or indirectly. Making of loans and advances or rendering
other forms of financial assistance, whatsoever, for housing activities to HFIs, banks,
state cooperatives, agriculturaland rural development banks or any other
institutions, class of institutions notified by the government.
5) Bill Discounting
Bill Discounting is an attractive fund based financial serviceprovided by the
finance companies. Itemerged as a profitable business in the early 90s for finance
6. companies and represented a diversification in their activities in tune with the
emerging financial scene in India. According to the Indian Negotiable Instrument
Act,1881, ''TheBill of Exchange is an instrumentin writing containing an
unconditional order, signed by the maker, directing certain people to pay a certain
sumof money only to, or to the order of, a certain person, or to the bearer of that
instrument.''The Bill of Exchange (B/E) is used for financing the transactions in
goods which means that it is essentially a trade-related instrument. The seller can
take over the accepted B/E to a discounting agency and obtain ready cash. The
margin between the ready money paid and the face value of the bill is called the
discountand is calculated at a rate percentage per annum on the maturity value.
The maturity of B/E is defined as the date on which payment will fall due. Normal
maturity periods are 30, 60, 90 or 120 days but bills maturity within 90 days are
seems to be the mostpopular.
6) Factoring
Factoring as a fund based financial service, provides resources to finance
receivables as well as facilitates the collection of receivables. Accounting to the
international institute for unification of privatelaw (UNIDROIT) Rome. Factoring
means an agreement between a factor and his client that includes at-least two of
the following services provided by the factor:
(a) Finance.
(b) Maintenance of accounts.
(c) Collection of debts and
(d) Protection against credit risk.
At present, Factoring in India is rendered by only a few financial institutions on a
recoursebasis. However, thereport of the working group on money market(Vulva
Committee) constituted by the RBI has recommended that banks should be
encouraged to set up factoring divisions to providespeedy and healthy finance to
the corporateentities.
7) InsuranceServices
Insuranceis a formof risk management primarily used to hedge againstthe
risk of a contingent loss. Itis to be defined as the transfer of risk of a potential loss
fromone to another, in exchange for a premium. Insuranceapplies to situations
7. wherea loss may or may not occur. Itcannot be applied to situations whereloss is
expected to happen. InsuranceContracts pay insurancebenefits or compensation in
the event of adverseoutcome like deaths, accidents, or losses fromother causes.
Until 1999, theinsuranceorganisation in India comprised two state- owned
monolithic institutions, namely, the Life InsuranceCorporation of India (LIC) and
General InsuranceCorporation of India (GIC) and its four subsidiaries. In order to
improvethe quality of insuranceservices in the country, the Malhotra Committee
(1993) had recommended a comprehensiveframework of reformin the insurance
sector. The insurancesector in the country is emerging in responseto the follow-up
action on the recommendation of the committee.
8) Securitization of Debt
Securitization, as a financing technique, originated in the United States during
the 1970s when theGovernmentNational Mortgage Association started trading in
securities backed by pools of mortgageloans. These securities known as 'mortgage
pass through securities'facilitated investors in purchasing fractionalundivided
interest in a pool of mortgageloans by providing for a sharein the income and
principal payments generated by the underlying assets in to securities, securities
into liquidity, and subsequently into assets on an ongoing basis, increasing thereby
the turnover of business and profit while also providing for flexibility in yield, pricing
pattern, issuing risk, and marketability of instruments used to the advantageof both
borrowers and lenders. Simply Banks and Financial Institutions makeloans and
advances for the purchaseof assets such as cars, houses, trucks, machinery etc.,.
Therefore, they hold a pool of individual loans and receivables that generate cash
flows. Securities are then created againstthem, which are rated and sold to
investors.
9) IssueManagement
The management of issues for raising funds through various types of
instruments by Companies is known as 'IssueManagement'. The function of capital
issuemanagement in India is carried out by Merchant bankers who havethe
requisite professionalskills and competence. A fast growing economy like India
offers tremendous scopefor issue management and the merchant bakers provide
their skills and expertise to companies in the management of capital issues. This
essentially aims at challenging households saving into the corporatesector through
issueof corporatesecurities.
8. 10) Portfolio Management
Th term portfolio means the total holdings of securities belonging to any
person. A list of all those services and facilities that are provided by a portfolio
manager to its client, relating to the management and administration of portfolio of
securities or funds of the clients, is referred to as 'Portfolio Management Services'.
The objective of portfolio management is to develop a portfolio that has a maximum
return at whatever level of risk the investor deems appropriate. According to SEBI,
Portfolio Manger means 'any person who pursuantto a contract or arrangement
with a client, advices or directs or undertakes on behalf of the client the
management or administration of a portfolio securities on the funds of the clients,
as the case may be.
11) CorporateRestructuring
CorporateRestructuring implies activities related to expansion or contraction
of a firm's operations or changes in its assets or financial or ownership structure.
The most common form of corporate restructuring aremergers/amalgamation and
acquisitions/turnovers, financialrestructuring, divestitures/de-mergers and buyouts.
Portfolio growth constitute one of the prime objectives of mostof the firms. Itcan
be achieved internally through the process of introduction and development of new
products, expanding the capacity of existing products. Alternatively, the growth
process can be facilitated externally through mergers, acquisitions, amalgamations,
turnovers, absorption, consolidation and so on.
12) Loan Syndication
This is a specialised services in preparation of projects, loan applications for
raising shortterm as well as long term credit fromvarious banks and financial
institutions for financing the projector meeting the working capitalrequirements.
They also manage Euro issues and help in raising funds abroad. The institutions of
Finance with which the merchantbankers syndicateinclude IndustrialFinance
Corporation of India(IFCI), IndustrialDevelopmentBank of India(ICICI),Industrial
Reconstruction Bank of India(IRBI), and shipping creditand investment company of
India Ltd. (SCICI Ltd.). In addition, CommercialBanks, Mutual Funds and Venture
Capital Firms are also involved in the Loan Syndication for meeting the working
capital requirement of trade and industry.
13) Stock Broking
9. The process by which buyers and sellers of stock of securities are brought
together under a common platform called the stock exchange is known as 'Stock
Broking'. Stock Broking is essentially the job of a financial serviceintermediary. Stock
Broking is carried by brokers and sub brokers who arepermitted by the SEBI. A stock
broker may be an individual or a corporate. Stock Broking services areprovided both
online as well as offline to suit the requirements of clients. Stock Broking activities
are carried out by banking as well as non-banking financialcompanies. Stock Brokers
offer the services to both domestic as well as overseas clients. Most popular among
the domestic company stock brokers include Share-Khan, ICICI CreditKotak
Securities, IDBI CapitalMarkets, India Bulls, Geojit, Reliance Money, India Infoline
etc.,.
14) Credit Rating
Credit Rating is the symbolic indicator of the current opinion of the rating
agency regarding the relative ability of the issue of financial instruments to meet the
serviceobligations as and when they arise. Itprovides a relative thinking of credit
quality of financial instrument or their grading according to investment qualities. In
other words, creditrating provides a simple systemof gradation by which the
relative capacities of companies make timely repayment of of interest and principal
on a particular type of financial instrumentcan be noted. As a fee based financial
advisory service, creditrating is, obviously extremely useful to investors, corporates,
banks and financial institutions. For Investors, itis an indicator expressing the
underlying credit quality of an issueprogramme.
Financial Economics
Financial Economics means the application of economic theory to problems
that arise in finance. Much of economic theory begins with the concept of
competition and competitive markets. Fromthe implication of competitive markets
one learns that price in competitive markets are pulled or pushed into equality with
the marginalcost of producing the goods or services traded in the market. If there
are no barriers to competitions, economic forces erode the excessiveprofit of those
firms which are able to producerevenues from sales greatly exceeding costs.
Competitive markets are a conceptual benchmark upon which economic analysis of
industries and firms is built and area touchstonefromwhich to begin to analysethe
performanceand prospects of an industry.
10. Financial services in India
The Indian Financial Systemwas unorganized upto the 1970s. With the
nationalisation of the 14 major privatesector banks on 19th
July 1969, the Indian
Banking systembecame predominantly owned by the government. Interestrates
were controlled by the reservebank of India. The state developed monolithic
finance companies to providefinancial services:
IndustrialDevelopmentCorporation of India -1948
IndustrialDevelopmentBank of India -1964
Life InsuranceCorporation -1956
General InsuranceCorporation -1973
Unit Trustof India -1964
The financial services sector and financial markets were targets for financial
sector reforms in the period after 1991 and structuralchanges were introduced in
the financial sector.