Consequent upon the restructuring of commerce and management curricula by many Universities and autonomous colleges, many new subjects on thrust areas have recently been introduced. One such broad area is the FINANCIAL SECTOR which comprises of financial markets, financial institutions and financial services.
Financial markets have been increasingly influenced in recent times by financial innovations in terms of products and instruments, adoption of modern technologies, opening up of the market to the global economy, streamlining of the regulatory framework and so on. Similarly, many innovative financial products are introduced to cater to the varied requirements of both corporate and individual customers. In the aftermath of this changing financial scenario, students of commerce and management are badly in need of a suitable textbook covering all these aspects incorporating the latest developments in the respective fields.
Realising the imperative need to bring out a suitable book on ‘Financial Services’ tailored to meet the specific requirements of students of many universities, and colleges in Tamil Nadu a modest attempt has been made to present this edition in the hands of the academic community. The speciality of this volume is that all matters are presented in a lucid manner and in simple language, notwithstanding the technical nature of the subject. All latest developments have been covered, and above all, it is most student-friendly.
Contents –
1. FINANCIAL SYSTEM
Functions of the Financial System – Financial Concepts – Financial Assets – Financial Intermediaries – Financial Markets – Importance of Capital Market – Money Market – Foreign Exchange Market – Financial Rates of Return – Financial Instruments – Growth of Financial System in India – Financial Sector Reforms – Other Major Reforms Introduced – Financial System and Economic Development – Problems of Indian Financial System – Questions.
2. FINANCIAL MARKETS
Money Market – Money Market vs. Capital Market – Features of a Money Market – Characteristic Features of a Developed Money Market – Importance of Money Market – Composition of Money Market – Primary Market – Distinction between Primary Market and Stock Exchange – Relationship between Primary Market and Stock Exchange – Functions of Primary Market – Methods of Floating New Issues – Principal Steps of a Public Issue – Principal Steps of Private Placement – Principal Steps in the Case of Offer-for-Sale – Advantages of Primary Market – Secondary Market – Functions/Services of Stock Exchanges – Recognition of Stock Exchanges – Organisation of Stock Exchanges in India – Listing of Securities – Listing Procedure – Methods of Trading in a Stock Exchange – Online Trading – Merits of Online Trading – Role of Securities and Exchange Board of India – Questions.
3. FINANCIAL SERVICES
Meaning, Scope and Innovations – Features of Financial Services – Importance of Financial Services – Classification of Financial Service Industry – Growth of Financial Services – Role of Financial Services – Problems/Challenges of the Financial Service Sector – Present Scenario – Questions.
4. MERCHANT BANKING
Introduction – Definition – Origin – Merchant Banking in India – Types of Merchant Bankers – Merchant Banks and Commercial Banks – Role/Services of Merchant Banks – Merchant Bankers as Lead Managers – Qualities Required for Merchant Bankers – Regulations / Guidelines for Merchant Bankers – Merchant Bankers’ Commission – Merchant Bankers in the Market-making Process – Progress of Merchant Banking in India – Problems of Merchant Bankers – Scope for Merchant Banking in India – Questions.
5. VENTURE CAPITAL
Origin and Growth – Initiative in India – Concept of Venture Capital – Features of Venture Capital – Venture Capital Financing – Importance of Venture Capital – Guidelines / Regulation – The Indian Scenario – Present Position – Suggestions for the Growth of Venture Capital Funds – Nitin Desai Committee’s Recommendations – Questions.
6. LEASING
Concept of Leasing – Steps Involved in Leasing Transaction – Types of Lease – Instalment Buying, Hire Purchase and Leasing – Advantages of Leasing – Disadvantages of Leasing – History and Development of Leasing – Legal Aspects of Leasing – Contents of a Lease Agreement – Income Tax Provisions Relating to Leasing – Sales Tax Provisions Pertaining to Leasing – Method of Ascertaining Lease Rentals – Evaluation of Leasing – Other Factors Influencing Buy/Borrow or Lease Decision – Structure of Leasing Industry – Problems of Leasing – Prospects – Questions.
7. CREDIT RATING
Meaning of Credit Rating – Functions of Credit Ratings – Origin – Credit Rating in India – Benefits of Credit Rating – Benefits to Rated Companies – Credit Rating Agencies in India – SEBI’s New Norms for Credit Rating Agencies – New Symbols of Credit Rating – Practical Problems – Future of Credit Rating in India – Questions.
8. DISCOUNTING, FACTORING AND FORFAITING
Introduction – Discounting – Factoring – Meaning – Definition – Modus Operandi – Terms and Conditions – Functions – Types of Factoring – Factoring vs. Discounting – Cost of Factoring – Costing and Pricing Technique – Benefits – Factoring in Indian Context – Factoring Regulation (Amendment) Bill 2020 – International Factoring – Factoring in Other Countries – EDI Factoring – Forfaiting – Working of Forfaiting – Benefits of Forfaiting – Forfaiting in India – Questions.
9. MUTUAL FUNDS
Introduction – Scope of Mutual Fund – Definition – Origin of the Fund – Types of Funds/Classification of Funds – Importance of Mutual Funds – Risks – Organisation and Management of the Fund – Operation of the Fund – Facilities Available to Investors – Net Asset Value – Investor’s Rights – Regulation of Mutual Funds/General Guidelines – Selection of a Fund – Mutual Funds in India – Reasons for Slow Growth – Future of Mutual Fund Industry – Questions.
10. DEPOSITORY SYSTEM (DEMAT SERVICES)
Definition and Meaning – Objectives of a Depository – Activities of the Depository – Interacting Institutions – Depository Process – Demat Account – Trading in a Depository System – Depositories in the International Market – Depository System in India – SEBI (Depositories and Participants) Regulation Act, 1996 – Depository Process/Demat Process in India – Benefits of Depository System – National Securities Depository Ltd. (NSDL) – Central Depository Services (India) Ltd. (CDSL) – Drawbacks – Remedial Measures – Questions.