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Dear students get fully solved assignments
Send your semester & Specialization name to our mail id
-> help.mbaassignments@gmail.com
or
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Summer 2013
Master of Business Administration- MBA Semester 4
MF0017/MA0041 – Merchant Banking and Financial Services - 4 Credits
(Book ID: B1318)
Assignment-60marks
Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of
400 words. Each question is followed by evaluation scheme.
Q1. Explain the functions of merchant banking and functions of financial intermediaries.
Answer : Functions of merchant banking :
The functions of merchant banking are listed as follows:
1.Raising Finance for Clients : Merchant Banking helps its clients to raise finance through issue of
shares, debentures, bank loans, etc. It helps its clients to raise finance from the domestic and
international market.
2.Broker in Stock Exchange : Merchant bankers act as brokers in the stock exchange. They buy and sell
shares on behalf of their clients. They conduct research on equity shares. They also advise their clients
about which shares to buy, when to buy, how much to buy and when to sell..
3. Project Management : Merchant bankers help their
Q2. What do you understand by book building and Green shoe option? Explain the book building
guidelines.
Answer : Book building :
Book building refers to the process of generating, capturing, and recording investor demand for shares
during an Initial Public Offering (IPO), or other securities during their issuance process, in order to
support efficient price discovery. Usually, the issuer appoints a major investment bank to act as a major
securities underwriter or book runner. The “book” is the off-market collation of investor demand by the
book runner and is confidential to the book runner, issuer, and underwriter.
Explanation :
Book building is a common practice in
Q3. Explain the roles and responsibilities of custodian services. Write down the code of conduct
prescribed by SEBI.
Answer : Role and responsibilities of custodian services :
Services provided by a bank custodian are typically the settlement, safekeeping, and reporting of
customers’ marketable securities and cash. A custody relationship is contractual, and services
performed for a customer may vary. Banks provide custody services to a variety of customers, including
mutual funds and investment managers, retirement
Q4. Explain the leases in the financial statements in case of lessees and lessors.
Answer : Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it
must pay a series of contractual, periodic, tax deductible payments.
The lessee is the receiver of the services or the assets under the lease contract and the lessor is the
owner of the assets. The relationship between the tenant and the landlord is called a tenancy, and can
be for a fixed or an indefinite period of time (called the term of the lease). The consideration for the
lease is called rent. A gross lease is when
Q5. Give the meaning and characteristics of Hire Purchase finance. Differentiate between Hire
Purchase Vs. Installment and Hire Purchase Vs. Leasing.
Answer : Meaning and characteristics of hire purchase finance :
A method of buying goods through making installment payments over time. The term hire purchase
originated in the U.K., and is similar to what are called "rent-to-own" arrangements in the United States.
Under a hire purchase contract, the buyer is leasing the goods and does not obtain ownership until the
full amount of the contract is paid. The characteristics of hire-purchase system are as under
Hire-purchase is a credit purchase.
The price under
Q6. Explain the money market products.
Answer : Different types of money market products are :
1. Call/ notice money : The call/notice/term money market is a market for trading very short term liquid
financial assets that are readily convertible into cash at low cost. The money market primarily facilitates
lending and borrowing of funds between banks and entities like Primary Dealers. An institution which
has surplus funds may lend them on an uncollateralized basis to an institution which is short of funds.
The period of lending may be for a period of 1 day which is known as call money and between 2 days
and 14 days which is known as notice
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id
-> help.mbaassignments@gmail.com
Or
call us at -> 08263069601

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Mf0017 ma0041 merchant banking and financial services

  • 1. Dear students get fully solved assignments Send your semester & Specialization name to our mail id -> help.mbaassignments@gmail.com or call us at -> 08263069601 Summer 2013 Master of Business Administration- MBA Semester 4 MF0017/MA0041 – Merchant Banking and Financial Services - 4 Credits (Book ID: B1318) Assignment-60marks Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme. Q1. Explain the functions of merchant banking and functions of financial intermediaries. Answer : Functions of merchant banking : The functions of merchant banking are listed as follows: 1.Raising Finance for Clients : Merchant Banking helps its clients to raise finance through issue of shares, debentures, bank loans, etc. It helps its clients to raise finance from the domestic and international market. 2.Broker in Stock Exchange : Merchant bankers act as brokers in the stock exchange. They buy and sell shares on behalf of their clients. They conduct research on equity shares. They also advise their clients about which shares to buy, when to buy, how much to buy and when to sell.. 3. Project Management : Merchant bankers help their Q2. What do you understand by book building and Green shoe option? Explain the book building guidelines. Answer : Book building : Book building refers to the process of generating, capturing, and recording investor demand for shares during an Initial Public Offering (IPO), or other securities during their issuance process, in order to support efficient price discovery. Usually, the issuer appoints a major investment bank to act as a major securities underwriter or book runner. The “book” is the off-market collation of investor demand by the book runner and is confidential to the book runner, issuer, and underwriter. Explanation : Book building is a common practice in Q3. Explain the roles and responsibilities of custodian services. Write down the code of conduct prescribed by SEBI. Answer : Role and responsibilities of custodian services :
  • 2. Services provided by a bank custodian are typically the settlement, safekeeping, and reporting of customers’ marketable securities and cash. A custody relationship is contractual, and services performed for a customer may vary. Banks provide custody services to a variety of customers, including mutual funds and investment managers, retirement Q4. Explain the leases in the financial statements in case of lessees and lessors. Answer : Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments. The lessee is the receiver of the services or the assets under the lease contract and the lessor is the owner of the assets. The relationship between the tenant and the landlord is called a tenancy, and can be for a fixed or an indefinite period of time (called the term of the lease). The consideration for the lease is called rent. A gross lease is when Q5. Give the meaning and characteristics of Hire Purchase finance. Differentiate between Hire Purchase Vs. Installment and Hire Purchase Vs. Leasing. Answer : Meaning and characteristics of hire purchase finance : A method of buying goods through making installment payments over time. The term hire purchase originated in the U.K., and is similar to what are called "rent-to-own" arrangements in the United States. Under a hire purchase contract, the buyer is leasing the goods and does not obtain ownership until the full amount of the contract is paid. The characteristics of hire-purchase system are as under Hire-purchase is a credit purchase. The price under Q6. Explain the money market products. Answer : Different types of money market products are : 1. Call/ notice money : The call/notice/term money market is a market for trading very short term liquid financial assets that are readily convertible into cash at low cost. The money market primarily facilitates lending and borrowing of funds between banks and entities like Primary Dealers. An institution which has surplus funds may lend them on an uncollateralized basis to an institution which is short of funds. The period of lending may be for a period of 1 day which is known as call money and between 2 days and 14 days which is known as notice Dear students get fully solved assignments Send your semester & Specialization name to our mail id -> help.mbaassignments@gmail.com Or call us at -> 08263069601