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Dear students get fully solved SMU MBA assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
ASSIGNMENT
DRIVE WINTER 2015
PROGRAM MBA(SEM 4)
SUBJECT CODE & NAME MA0046MERCHANT BANKERS
BK ID B1812
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.
Question.1. How does a merchant banker get registered with SEBI?
What are the eligibility criteria?
Answer:The SecuritiesandExchange Board of India (SEBI) is the regulator for the securities market
inIndia.It wasestablishedinthe year1988 and givenstatutory powerson 12 April 1992 through the
SEBI Act, 1992.
InitiallySEBIwasa nonstatutorybodywithoutany statutory power. However, in 1995, the SEBI was
given additional statutory power by the Government of India through an amendment to the
Securities and Exchange Board of India Act, 1992. In April 1988 the SEBI was constituted as the
regulator of capital markets in India under a resolution of the Government of India.
The SEBI is managed by its members, which consists of following:
 The chairman who is nominated by Union Government of India.
 Two members, i.e., Officers from Union
Question.2. How does an Indian Company raise funds from the
foreign markets?Differentiate between ADRs and GDRs.
Answer:Raising funds from foreign markets
Fundingisthe act of providing resources, usually in the form of money (financing), or other values
such as effort or time (sweat equity), for a project, a person, a business, or any other private or
public institution. The process of soliciting and gathering funds is known as fundraising.
Question.3. Illustrate some of the fund based financial services.
Answer:WORKING CAPITAL FINANCING:A firm's working capital is the money available to meet
current obligations (those due in less than a year) and to acquire earning assets. Chinatrust
Commercial Bank offers corporations Working Capital Finance to meet their operating expenses,
purchasing inventory, receivables financing, either by direct funding or by issuing letter of credit.
Key Benefits
 Fundedfacilities,i.e.the bankprovidesfundingandassistance toactuallypurchase business
assets or to meet business
Question.4. Explain the essentials of an Insurance Contract.
What is Bancassurance?
Answer:Essentials of an Insurance Contract: To make contract of insurance valid in the eye of law,
some essential elements must be considered in its process of validity. The insurance contract, like
any other contracts must satisfy the usual conditions of a contract. The essentials of insurance
contracts are as follows:
1. Agreement:Agreementmeanscommunicationbythe partiestoone anotherof theirintentionsto
create legal relationship. For a valid contract of
Question.5. Explain the benefits and limitations of Leasing.
Answer:Leasingisbecomingapreferredsolutiontoresolve fixedasset requirements vs. purchasing
the asset.While evaluatingthisinvestment,itisessential forthe ownerof the capital to understand
whetherleasingwouldyieldbetterreturnsoncapital ornot.Let us have a lookat leasingadvantages
and disadvantages:
Benefits of Leasing:
 Balanced Cash Outflow: The biggest advantage of leasing is that cash outflow or payments
related to leasing are spread out over several years, hence saving the burden of one-time
significant cash payment. This helps a business to maintain steady cash-flow profile.
 Quality Assets: While leasing an asset, the ownership of the asset still lies with the lessor
whereas the lessee just pays rental
Question.6. Illustrate the concept of effective portfolio
management to minimise risk and maximisereturns.
Effective portfolio management to minimise risk andmaximise returns
Answer:A portfolio consists of a number of different securities or other assets selected for
investmentgains.However,aportfolioalsohasinvestmentrisks. The primary objective of portfolio
theoryor managementistomaximize gainswhile reducingdiversifiable risk. (Diversifiable risk is so
named because the risk can be reduced by diversifying assets. Systemic risk, on the other hand,
cannot be reducedthroughdiversification,since itisarisk that affectsthe entire economy and most
investments. So even the most optimized portfolio will still be subject to systemic risk.)
Traditional portfolio management is a nonquantitative approach to balancing a portfolio with
differentassets,suchasstocksand bonds, from different companies and different sectors as a way
of reducing the overall risk of the portfolio. The
Dear students get fully solved SMU MBA assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601

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Ma0046 merchant bankers

  • 1. Dear students get fully solved SMU MBA assignments Send your semester & Specialization name to our mail id : “ help.mbaassignments@gmail.com ” or Call us at : 08263069601 ASSIGNMENT DRIVE WINTER 2015 PROGRAM MBA(SEM 4) SUBJECT CODE & NAME MA0046MERCHANT BANKERS BK ID B1812 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. Question.1. How does a merchant banker get registered with SEBI? What are the eligibility criteria? Answer:The SecuritiesandExchange Board of India (SEBI) is the regulator for the securities market inIndia.It wasestablishedinthe year1988 and givenstatutory powerson 12 April 1992 through the SEBI Act, 1992. InitiallySEBIwasa nonstatutorybodywithoutany statutory power. However, in 1995, the SEBI was given additional statutory power by the Government of India through an amendment to the Securities and Exchange Board of India Act, 1992. In April 1988 the SEBI was constituted as the regulator of capital markets in India under a resolution of the Government of India. The SEBI is managed by its members, which consists of following:  The chairman who is nominated by Union Government of India.  Two members, i.e., Officers from Union Question.2. How does an Indian Company raise funds from the foreign markets?Differentiate between ADRs and GDRs.
  • 2. Answer:Raising funds from foreign markets Fundingisthe act of providing resources, usually in the form of money (financing), or other values such as effort or time (sweat equity), for a project, a person, a business, or any other private or public institution. The process of soliciting and gathering funds is known as fundraising. Question.3. Illustrate some of the fund based financial services. Answer:WORKING CAPITAL FINANCING:A firm's working capital is the money available to meet current obligations (those due in less than a year) and to acquire earning assets. Chinatrust Commercial Bank offers corporations Working Capital Finance to meet their operating expenses, purchasing inventory, receivables financing, either by direct funding or by issuing letter of credit. Key Benefits  Fundedfacilities,i.e.the bankprovidesfundingandassistance toactuallypurchase business assets or to meet business Question.4. Explain the essentials of an Insurance Contract. What is Bancassurance? Answer:Essentials of an Insurance Contract: To make contract of insurance valid in the eye of law, some essential elements must be considered in its process of validity. The insurance contract, like any other contracts must satisfy the usual conditions of a contract. The essentials of insurance contracts are as follows: 1. Agreement:Agreementmeanscommunicationbythe partiestoone anotherof theirintentionsto create legal relationship. For a valid contract of Question.5. Explain the benefits and limitations of Leasing. Answer:Leasingisbecomingapreferredsolutiontoresolve fixedasset requirements vs. purchasing the asset.While evaluatingthisinvestment,itisessential forthe ownerof the capital to understand whetherleasingwouldyieldbetterreturnsoncapital ornot.Let us have a lookat leasingadvantages and disadvantages: Benefits of Leasing:
  • 3.  Balanced Cash Outflow: The biggest advantage of leasing is that cash outflow or payments related to leasing are spread out over several years, hence saving the burden of one-time significant cash payment. This helps a business to maintain steady cash-flow profile.  Quality Assets: While leasing an asset, the ownership of the asset still lies with the lessor whereas the lessee just pays rental Question.6. Illustrate the concept of effective portfolio management to minimise risk and maximisereturns. Effective portfolio management to minimise risk andmaximise returns Answer:A portfolio consists of a number of different securities or other assets selected for investmentgains.However,aportfolioalsohasinvestmentrisks. The primary objective of portfolio theoryor managementistomaximize gainswhile reducingdiversifiable risk. (Diversifiable risk is so named because the risk can be reduced by diversifying assets. Systemic risk, on the other hand, cannot be reducedthroughdiversification,since itisarisk that affectsthe entire economy and most investments. So even the most optimized portfolio will still be subject to systemic risk.) Traditional portfolio management is a nonquantitative approach to balancing a portfolio with differentassets,suchasstocksand bonds, from different companies and different sectors as a way of reducing the overall risk of the portfolio. The Dear students get fully solved SMU MBA assignments Send your semester & Specialization name to our mail id : “ help.mbaassignments@gmail.com ” or Call us at : 08263069601