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
(Prefer mailing. Call in emergency )
ASSIGNMENT
DRIVE WINETR 2013
PROGRAM MBADS – (SEM 4/SEM 6) / MBAN2 / MBAFLEX – (SEM 4) /
PGDFMN – (SEM 2)
SUBJECT CODE & NAME MF0017 - MERCHANT BANKING AND FINANCIAL SERVICES
SEMESTER 4
BK ID B1815
CREDITS 4
MARKS 60
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.
1 Explain the concept of book building and methods or guidelines of book building with 75 and 100
% of book building.
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
2 Issue management is one of the important functions of merchant bankers and lead bankers.
Explain the two types of activities pre issue obligation and post issue obligation. Also write on the
concept of Application Supported by Blocked Amount (ASBA)
Answer : Introduction of issue management :
Issues or issue management refers to the systematic examination of an organization (usually
companies, public authorities, political parties, associations, etc.), with their environmental
concerns. It's about the public to identify emerging, organization relevant issues early and to react
accordingly. This can be through participation in shaping public opinion or done by adapting the
organization policy. In addition, an organization
3 Write short notes on:
a)Foreign Direct Investment (FDI) and its role

2. Answer : Foreign direct investment (FDI) plays an extraordinary and growing role in global business.
It can provide a firm with new markets and marketing channels, cheaper production facilities, access
to new technology, products, skills and financing. For a host country or the foreign firm which
receives the investment, it can provide a source of new technologies, capital, processes, products,
organizational technologies and management skills, and as such can provide a strong impetus to
economic development. Foreign direct
4 Depository helps in the transfer of securities from one investor to another in an electronic form.
Write the differences between Bank and Depository. Explain the functions performed by
Depository.
Answer : Differences between bank and depository :
On the simplest level, depository is used to refer to any place where something is deposited for
storage or security purposes. More specifically, it can refer to a company, bank or an institution that
holds and facilitates the exchange of securities. Or a depository can refer to a depository institution
that is allowed to accept monetary deposits from customers. Central security depositories allow
brokers and other financial companies to deposit
5 Every investor has his own risk perceptions and objectives of investment. Write about Mutual
funds also write down about the benefits and disadvantages of Mutual funds which is very
essential for all the investors to know.
Answer : Benefits of mutual funds
 Professional Investment Management.
By pooling the money of thousands of investors, mutual funds provide full-time, high-level
professional management that few individual investors can afford to obtain independently.
Such management can be important to achieving results in today's complex markets.
 Diversification.
Mutual funds invest in a broad range of
6 Rating methodology is used by the major Indian credit rating agencies. Explain on the main
factors that are analyzed in credit rating agencies and also on the limitations on the limitations of
credit rating.
Answer : A Credit Rating issued by a credit rating agency is an assessment of the credit worthiness of
individual financial securities (For example, a bond) and debt issued by corporations, government
issued securities or even a country’s ability to repay debt.
Credit Ratings are assigned by rating agencies to companies and debt instruments, are designed to
gauge the likelihood that a company will
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )